In July 2005, China revalued its currency by 2.1% and adjusted its exchange rate regime toward a more market-based system. ABB, a global power and automation technologies company based out of Switzerland with operations in China, was among those companies confronted with the challenge of addressing the revaluation of the yuan and the possibility of future appreciation. Provides background on ABB's activities in China as well as incentives provided by Chinese officials for multinational corporations to move inland. May be used with: (9-706-022) China: To Float or Not to Float? (B): Timeline of Changes Relevant to the Chinese Renminbi; (9-706-023) China: To Float or Not to Float? (C ): Esquel Group and the Chinese Renminbi; (9-706-031) China: To Float or Not To Float? (D): Bank of American's Strategic Investment in China Construction Bank; (9-706-036) China: To Float or Not to Float? (F): Alcatel and Strong Chinese Competition; (9-706-021) China: To Float or Not to Float? (A).