IPC expresses disappointment in China's currency rate adjustment

Citation

(2005), "IPC expresses disappointment in China's currency rate adjustment", Soldering & Surface Mount Technology, Vol. 17 No. 4. https://doi.org/10.1108/ssmt.2005.21917dab.005

IPC expresses disappointment in China's currency rate adjustment

IPC expresses disappointment in China's currency rate adjustment

Keywords: Printed circuits

IPC's Government Relations (GR) Steering Committee is disappointed with China's 2 percent revaluation of the yuan against the dollar. China recently announced this currency market reform in which the Peoples Bank of China un-pegged the yuan from the dollar and is floating its currency in a tight 0.3 percent band against a basket of foreign currencies. The change strengthened the yuan to 8.11 yuan to the dollar – from 8.277 yuan, where it had been fixed for more than a decade.

Dan Feinberg, Chairman of IPC's GR Steering Committee and President of Fein-Line Associates, said “In the short term, these changes will have little or no impact on the balance of trade and the US electronics manufacturing market sector. However, China's reforms could open the door for progress toward the GR committee's ultimate goal of a 40 percent revaluation against the dollar.”

John Kania, IPC's government relations director, added “China's new system is a small step in the right direction, but more needs to be done. IPC will continue to support the China Currency Coalition (of which IPC is a member) and the Ryan-Hunter Bill (H.R. 1498, Chinese Currency Act of 2005), that more aggressively fixes the currency problem for IPC members. We've been lobbying this effort for a long time and urge China to continue to make the necessary changes to eliminate the undervaluation of its currency.”

For additional information on IPC's Government Relations Committee or the China Currency Coalition, contact John Kania, IPC's director of government relations, at 202-962-0460 or jkania@ipc.org.