The adjustment's small range will not hurt the large number of Taiwanese businesses in China, because most of them have taken precautions as a result of the extended period in which calls were made to float the yuan, she said.
But if the yuan continues to rise in a range between 4 percent and 7 percent by the end of the year, as foreign analysts have predicted, Taiwanese manufacturers in China will need to spend more on labor and raw materials, while earning less from exports, said Chou Ji (
The appreciation may hurt Taiwanese exports, especially to China, the nation's largest trading partner, if a revalued yuan limits companies' spending power, Chou said.
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