China to help enterprises better hedge exchange rate risks amid rising yuan

BEIJING -- The Chinese government will work to help enterprises better hedge exchange rate risks as the yuan rises, Gao Feng, spokesperson for the Ministry of Commerce, said on Thursday.

Gao made the remarks after the Chinese currency, the renminbi, or the yuan, had appreciated sharply in recent days.

"Exchange rate fluctuations have a multidimensional impact on the production and operations of foreign trade enterprises, affecting their bargaining power and cost-effectiveness," Gao told a regular press conference.

The ministry will work with relevant government departments to promote the diversifying of hedging products and services, and optimize the environment for renminbi cross-border trade settlement, so as to help enterprises better adapt to two-way fluctuations of the renminbi exchange rate and enhance their capacity to guard against risks, Gao said.

Speaking about Asia-Pacific cooperation, he said that strengthening trade cooperation in the region has its unique advantages and an inherent driving force.

With the deepening of economic globalization and the accelerating flows of capital, technology and labor, the Asia-Pacific has become the most dynamic and promising regions in the world, he said.

Since the outbreak of COVID-19, countries in the Asia-Pacific region have supported each other and enhanced trade and industrial chain cooperation, demonstrating their strong resilience and potential for development, Gao said.

Under the Regional Comprehensive Economic Partnership agreement, over 90 percent of trade in goods in the region will eventually be tariff-free, which will further boost intra-regional trade facilitation and make industrial and supply chain coordination more efficient, he said.

When asked about the recent COVID-19 outbreak in the city of Suzhou in East China's Jiangsu province, Gao said the impact on the Suzhou Industrial Park was under control, and the production and operations of most enterprises have not been affected.

The ministry will work to help local enterprises solve difficulties in logistics, disinfection and testing procedures, and assist affected companies to resume work and production as soon as possible, he said.