Yuan swing will help build the country's future brand names overseas

The recent decision to depreciate the yuan by the People's Bank of China, or central bank, caught many people by surprise. This triggered speculation that all was not well with China's economy.

But now that the dust has settled, it is time to reflect on the deeper implications behind the exchange rate decision. In doing so, it should become clear that this was a carefully calculated move by the Chinese government as part of its reforms to modernize and internationalize the country's industrial base.

While many companies here have built successful domestic and international brands, the global marketplace has become extremely competitive. Businesses such as telecommunications equipment provider Huawei Technologies Co Ltd and PC manufacturer Lenovo Group Ltd continue to lead the way.