Chinese Sourcing and the Yuan. Harrison Equipment of Denver, Colorado, purchases all of its hydraulic tubing from manufacturers in mainland China. The company has recently completed a corporate-wide initiative in six sigma/lean manufacturing. Completed oil field hydraulic system costs were reduced 3.8% over a one-year period, from $855,000 to $851,370 . The company is now worried that all of the hydraulic tubing that goes into the systems (making up 18% of their total costs) will be hit by the potential revaluation of the Chinese yuanif some in Washington get their way. How would a 12.8% revaluation of the yuan against the dollar impact total system costs?