Taiwan's export orders contracted for a fourth month in July as demand from China continued to deteriorate, rattling its trade-reliant Asian neighbors and pointing to slower global growth. A shaky economic situation in China, Taiwan's largest trading partner, puts a lid on demand for the island's advanced tech goods and pressures other Asian economies who rely on Chinese domestic spending. China's yuan, which has depreciated by 2.9 percent since it was devalued last week, has caused waves around the world as authorities battle a slowdown in the world's second-biggest economy. Taiwan's Ministry of Economic Affairs said on Thursday it did not rule out a full-year drop in overall export orders, which would be the first in six years. "The weak export orders foretell that exports will remain sluggish not only for Taiwan, but also for the region," ANZ Research economist Louis Lam said in a report. Orders overall fell 5 percent last month from a year earlier, worse than a 4.5 percent decline forecast in a Reuters poll. In June, orders had fallen 5.8 percent after shrinking 5.9 percent in May, the fastest pace in more than two years. Chinese orders slid 14.1 percent, a deeper fall than previous months. One bright spot was U.S. orders, which rose 10.9 percent, although those from Japan and Europe fell 8.8 and 3.3 percent, respectively. The yuan's fall so far is not having an adverse effect yet and may even be beneficial for contract manufacturers such as Hon Hai Precision Industry Co Ltd, who hire Chinese workers and pay them in yuan. "The yuan depreciation may have some positive impact on tech firms who send goods to China for final assembly," Taiwan's Economic Minister Woody Duh said ahead of the data. "In terms of yuan devaluation, it would have to fluctuate from where it is now all the way down by 10 percent" to have an impact on China's export competitiveness, said William Fung, chairman of Hong Kong-based global logistics and distribution firm Li & Fung Ltd. Tech Slump Taiwan's export orders, which are seen as an indication of the strength of Asian exports and of global demand for technology, have been weakening after surging last year from strong demand for Apple iPhones. Slumping orders have hit manufacturers, although many are farmed out to production sites in China operated by Taiwanese tech companies. Communication-related goods such as phones, smartwatches and servers saw healthy 8.4 percent on-year growth, the ministry said, and were the only tech category to post gains. Orders for precision goods such as flat panels tumbled 19.4 percent, however, amid falling prices. The government said last week that Taiwan's exports are expected to fall 7.1 percent this year, the biggest annual drop in six years, with economic growth for 2015 forecast to also hit a six-year low. The central bank has held its official interest rate but has eased policy by guiding the overnight interbank rate lower since China's devaluation, in a bid to weaken the currency to buffer its economy and exports. Elsewhere in Asia, South Korea's finance minister said on Thursday that China's decision to devalue the yuan puts "considerable pressure" on South Korea's export-reliant economy due to the global financial turmoil it has sparked. (Reuters)