1. The depreciation of the yen will affect China's import and export trade, especially in industries that are competitive with Japan in export, such as some high value-added mechanical and electrical products and some high-tech products, including mobile phones and computer accessories.

Second, the depreciation of the yen is likely to trigger a sharp competitive devaluation of the currencies of Southeast Asian countries, which will have an indirect impact on China's traditional export industries.

Third, the depreciation of the yen has slowed down the pace of Japanese companies' investment in China, and may lead the Japanese government to cut back on future loans to China.

Fourth, it may trigger a new round of government intervention in foreign exchange, which will put pressure on the stability of RMB exchange rate and increase risks in the financial sector.