(Xinhua)
Updated: 2008-04-19 10:11

But many other companies prefer price increases. Chinese leading home appliance maker Qingdao Haier said it would re-set its prices with overseas sellers once the yuan gained more than 3 percent. The new price would be determined by the specific foreign exchange rate.

Related readings:  Stable forex policy urged as yuan sets new mark against dollar  One USD trades less than 7 yuan  Yuan appreciation more rapid: Paulson  Textile exporters drop dollar pricing to offset yuan appreciation

Feng Bin, Suzhou Chunlan Air Conditioner Co Ltd general manager, said he hoped to transact via the euro. "The offer will expire in three months if the client sticks to the dollar. The exchange rate changes too quickly."

Experts say the change of currency clearing system is still not feasible for most exporters as it involves adjustment of export markets and bargain with foreign buyers. Besides, such services in domestic banks are too complicated, they say.

Therefore, some companies are considering financial derivatives as a way out. Shen Zhiming, Zhejiang Cathaya International Co Ltd manager, said his company had bought currency futures for two years. "It is a real learning process for Chinese enterprises, a process for internationalization."

The China Import and Export Fair has two phases, from April 15 to 20 and April 25 to 30. The first phase features textiles, garments, health products, household appliances, tools, small vehicles and hardware.

Food, tea, kitchenware, decorations, toys, sporting goods and office supplies highlights the second phase.

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