The Correlation Between The Change Of RMB Exchange Rate And The Adjustment Of Trade Structure

Under the background of the Peace and stability in overall political and economy at home and abroad, and China's reform and opening up, our economy obtain the rapid growth and continue to integrate into the global economy.Now,it has become global trading power. In the initial stage of the economy development, China is facing Considerable difficulties, due to the lack of domestic capital and technology, the low level of national disposable income, the serious shortage of domestic demand, China's economic development relies heavily on attracting foreign investment and foreign trade. Large population, cheap labor and favorable conditions with low cost, China's exports are competitive in the international market, the made-in-China products sold around the world. Our foreign trade got rapid development, both the scale of the export and import are largest in the world. However, behind the remarkable development of the foreign trade, we confront a lot of challenges, such as the rising of labor and raw material costs. Benefit from the current account surplus, China's foreign exchange reserves increase sharply, although we already has the largest foreign currency reserves in the world, Europe and the United States are extremely dissatisfied with the trade deficit and wish to achieve the RMB appreciation.In recent years, under the pressure of RMB appreciation, the urgent need of the upgrading of industrial structure and the change of the way of economic growth, the choice of exchange rate policy, the RMB exchange rate formation mechanism reform, become the hot research topic for economists. At the same time, the foreign trade play a important role in China's economic development. In the new political and economic environment, the cost of production is rising and the added-value of production is low, facing the competition from emerging economies, China's foreign trade confront enormous pressure. This paper, based on the actual situation and the challenges of China's economic development, try to research the relationship between the change of the RMB exchange rate and the change of China's trade structure. By reference to trade theory, exchange rate theory to elaborate the theoretical basis of the RMB exchange rate and China's trade structure change. Then this paper collect and process the key data and events about the RMB exchange rate and foreign trade structure change since china's reform and opening up, to show this historical process. On this basis, we choose the data with starting point of the exchange rate reform in 2005, and made empirical analysis to research the effect of RMB exchange rate change on the change of commodity structure and pattern structure of trade. Finally, this paper put forward policy recommendations in response to the new environment and challenges of the foreign trade and exchange rate reform.