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Global Companies Nervous About Yuan's Decline

Since China had changed its regulations on trading in its stock market back in April, the country has been struggling with a recession. However, now China's central bank allowed the yuan to drop below the U.S. Dollar, markets in Europe and Asia lost 1% to 3% in stocks. 

According to CNN, companies heavily invested in China are extremely worried about China purposely devaluing its currency. Companies selling luxury goods and fashion retailers and industries like mining and oil were the hardest hit by the yuan's decline. The decline could hurt profits and drive down the price of raw materials. 

"A deliberate attempt to lower the currency is indeed currency warfare." said Gabriel Stein, Oxford Economics director.

For more news on China, click here.