RMB appreciation directly affects four industrial sectors involving employment 70 million

China News agency, Beijing, April 22, Zhu, chief engineer of the Ministry of Industry and Information technology, said that exchange rate fluctuations will directly affect the light industry, textiles, electronics, electrical and mechanical four industrial industries, the four sectors of employment more than 70 million people. Zhu, the above four sectors are characterized by labour-intensive, low value-added, large export size, four sectors of exports accounted for 70% of industrial exports, "if exports fall, these industries will have a negative impact." It is reported that the impact of exchange rate on economic operation, especially for labor-intensive industries, has been considered and analyzed by the Ministry of Industry.　　Zhu said, "Last year's financial crisis, there are 20 million migrant workers returning home, this situation is what we do not want to see."　　For the large export contract, long delivery cycle of the ship, large-scale equipment industry, Zhu said, "If the renminbi has a substantial appreciation, these industries may have a substantial exchange losses, affecting business orders." A revaluation of the renminbi will also have a positive impact on certain industries, such as import-oriented industries and raw materials that rely mainly on imports. Recently, international commodity prices have risen significantly, with some iron ore suppliers proposing a 40% to 50% per cent rise in prices.　　Zhu in particular that "if we lack bargaining power, this part of the benefit may soon be shifted out". Zhu said, "We should focus on the steady and continuous improvement of the competitiveness of the industry in order to deal with the impact of various factors fluctuation on the development of the industry."