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Exporters expecting volatile forex rates

By Xu Jingxi in Guangzhou | China Daily | Updated: 2016-11-10 06:52

Chinese exporters have remained calm after the US presidential election result, saying they had prepared for inevitable exchange rate fluctuations, and see little impact on China's exports to the United States.

The surprise victory of Donald Trump, who lacks political experience, might mean some uncertainties about China-US trade, which is worrying for many of Chinese exporters, but they can cope with it, said Yan Guoshan, president of Foshan Textiles Import and Export Co Ltd.

"To avoid big financial losses due to exchange rate fluctuations, we always write into contracts that prices may be adjusted if the currency fluctuations are out of a certain range," Yan said.

"And we have been expanding our business with emerging markets such as Southeast Asia, the Middle East, Africa and South America in the past three years," he added.

Yan's company is based in Foshan, Guangdong province, and serves as the foreign trade agent for local manufacturers. It has an annual export volume of $200 million, mainly trading textiles, building materials, electronics, lighting products and furnishings.

The amount of business done by the company with the US market has shrunk from two-fifths of the total three years ago to one-fifth now.

"But the US is still an important market for us. We will consolidate the market by providing higher-quality products and conducting more detailed research on American consumers in different regions," Yan said.

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