The Effects Of RMB's Revaluation On China's Foreign Trade

The current world is a world which is closely-connected and highly-competed. The various countries all spare no effort to pursue international payment balance, even wins - odd.According to the traditional economic theory, the change of exchange rate affects a country's foreign;under the certain condition, the depreciation can enhance the product' s international competitive power, expand exportation and improve trade revenue and expenditure of one country. Since the reform and open policy, our country' s foreign trade develops vigorously;the trade surplus has increased year by year and the economy also continues the high speed growth. Associates to the several large scale declinations of Renminbi during this period;it seems that it has proven this traditional theory to be true.Since 2003, under the background in US dollar exchange rate' fall, the United States and Japan has being accused China through the underestimate of Renminbi to carry on the unfair foreign trade. From July 2005, our country started to practice the new exchange rate system and Renminbi independently revalues 2%. This has aroused largely attentions and interests. Precisely based on such premise background and the research significance, the author started this paper writing.In this article, author reviews Japan' s experience and the influences of RMB exchange rate' fluctuation on china' s foreign trade. Through the real diagnosis analysis, the author obtains such conclusions: 1. Renminbi' s former depreciation played an important role in development of china' s foreign trade, but due to China' s unique import-export goods structure and the macroscopic economic environment, the depreciation function was limited. 2. Our country' s current macroscopic economic environment and double wins-odd with large foreign exchange reserve supports Renminbi' s independent revaluation;the small scope revaluation cannot have the obvious impact to our country's import-export trade. 3. We must adjust the trade strategy, optimize the industrial structure and trade structure to realize our country' s foreign trade sustainable development.