A revaluation of the yuan would cause a mild, short-term hiccup for Procter & Gamble (P&G) but not affect the United States company's long-term investment plans, its former chairman said yesterday.
'There is going to be an effect with some imports and exports with a change,' John Pepper said. 'But if you look at an economy like China, it's one of the largest markets now. Our business would not be affected long-term by the exchange rate. Where we sit, it would not affect our bottom line.'
Mr Pepper made the comments yesterday at a gathering of global chief executives attending an advisory council meeting for the Beijing mayor. He said the mainland economy was stable and remained bullish on its prospects in China.
'Look at the way this economy is managed,' he said. 'Balance of payments are superb, cash levels are high. Nothing I see in the economic picture or with the exchange rate would have an effect on our investment in the country.'
Mr Pepper - who rarely speaks to the press - made a point of praising P&G's research and development group based in Beijing. It has developed new hair-care and oral-health products which are used in markets elsewhere in the world.
'Their work has not only allowed product brands to lower prices 50 to 75 per cent, but we are able to take those findings to the rest of the world, including the US, where they help us serve the lower-income population.'