China Exporters Suffer as Currency Rises

Dependent on exports to the United States, the Hebei Lihua Hat Co. saw its profits wiped out as China‘s currency rose steadily against the dollar over the past year.

Yet even those efforts might be inadequate, said Wang Zhenhao, the business manager for Hebei Lihua, located in Baoding, a city southwest of Beijing.

Chinese companies that supply U.S. retailers with billions of dollars worth of toys, furniture and other goods every year face a painful squeeze as the yuan rises, setting off a race to cut costs or find new products that Americans will pay more for

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