CRI听力:Devalued Eurodollar Entices Chinese Buy

The yuan's exchange rate against Euro dollar has dropped by about 10 percent since the outbreak of Europe's debt crisis. This probably means Chinese people could have a good discount when they consume European products with the native currency.

Zhao Kun has more.



Mr. Zhang and his wife plan to go on vacation in a South East Asian country this summer. But after the couple consulted with a local travel agency in the city of Suzhou, they changed their mind.

"In the light of the Euro depreciation, I think a trip to Europe now is quite a bargain."

Because the Euro devaluation has coincided with the summer holiday season, usually a tourism peak season, more economical Europe tours are on offer and travel agencies of the city have seen their orders go up by 30%.

"A package tour to Europe in June is 500 to 800 yuan lower than the price in April or May. A trip to three European countries in a row even dropped to 9999 yuan."

The travel service saleswoman adds that when in Europe travelers could also relish the chance of buying some luxury brands at lower prices.

However, some Chinese luxury zealots cannot wait to shop in Europe as many Europe based internet store sellers already act as purchasing agents to reap the benefits from the depreciated Euro. A seller on taobao.com is a good example, with the case of a 450-euro handbag.

"The exchange rate for today is about 8.6 yuan to the Euro. So you can get this handbag with 3,800 yuan. That's more than 600 kuai lower than a few months ago. The overall price of luxury brands has dropped by 10% and in the meantime we received an obvious increase of order sheets from China."

In Beijing's high-end shopping malls, the price of luxury goods doesn't reflect the fluctuation of the exchange rate instantly.
But luxury business insiders point out the currency's depreciation will begin to take a toll on new arrivals in the coming months.

But it is probably Chinese students in Europe that could take advantage of the financial tumble to the maximum. Some overseas study consulting firms estimate that the study cost in Europe is 10% lower on average than before.

Nevertheless, the depreciation of the Euro is a mixed blessing. Its long-term impact on the global economy has yet to be known and many Chinese enterprises that heavily rely on the export to Europe have a good reason to get anxious.

For CRI, I'm Zhao Kun.