China's construction machinery sector posted some of the strongest international revenue numbers in years. Zoomlion, Sany, XCMG, LGMG — all up sharply in H1 2026, driven almost entirely by overseas demand. The profit story is different. The yuan has strengthened ~5.5% since late 2025. For companies earning in dollars and euros but reporting in RMB, that's not a footnote — it's a first-order earnings variable. Revenue goes up. Profits go down. The headline looks like momentum. The underlying picture is margin compression. Power Construction Corporation of China makes this concrete: international revenue +30.63%. Net profit -29.56%. Same story at China Yuchai's MTU joint venture: premium diesel segment growing 40%+, margins still contracting. Here's the structural problem: these manufacturers pivoted overseas because domestic construction demand collapsed. They needed international markets. Now the same yuan strength that reflects China's current account surplus is taxing every dollar of foreign revenue they bring home. And the PBOC isn't going to fix it. "Basic stability" is the doctrine. Managed depreciation to relieve export margins isn't on the table. The cost-arbitrage advantage that built this sector's global position is narrowing — faster than management commentary suggests. Strong revenues. Weakening margins. Watch the gap.