China, South Korea Officials Alarmed as Yen Slide Threatens Exporters
Government officials from China and South Korea warned Monday that the rapidly falling yen may hurt their exporters. Japan’s monetary policies championed by Japanese Prime Minister Shinzo Abe to weaken the yen are an attempt to pull its moribund economy out of a two-decade slump. Officials from Beijing and Seoul, respectively, understand the need for Tokyo to revive its $5 trillion economy and escape persistent deflation but they also expressed worry that the massive monetary and fiscal stimulus has sharply weakened the yen and put their exporters at a disadvantage in global markets. Chinese and South Korean officials have refrained from direct action to maintain competitiveness, such as intervening by buying dollars in currency markets, but there is a risk of a response if their export sectors are severely hurt.