The Impact Of RMB Appreciation On China Three Major Industries And Measures To Be Taken

The People's Bank of China announced to transform the exchange rate-forming mechanism of RMB in July of 2005,which means will give up according to the only USD and will carry out the managed flouting exchang rate systerm that based on the market supply and demand and refers to a basket currency. From that time on ,RMB begins to appreciate remarkably and constantly.According to ecnormic theory,the price of international product will be brought down due to RMB appreciate,which promote the import;but the price of our commodity will increase so that the export will decrease,which will bring different dergee and different direction influence to some profession,and also bring some certion influence to ecornomy and society of our country .At the same time ,some insufficient problems of industry structure are exposed.Therefore it is necessary to research the influence of industry structure due to the appreciation of RMB.RMB exchange rate system has gone through the fixed exchange rate system, dual exchange rate system and a single managed floating exchange rate system development process. The purpose of the exchange rate reform is to establish a sound exchange rate system and to make renminbi exchange rate float in a stable, balanced level. Exchange rate system after the reform develops towards a more market-oriented direction, the floating scope is bigger and which better reflects the fundamentals of our economy, is better for our economy. After the reform, the renminbi against the U.S. dollar is on the rise. As of April 16, 2011, the RMB exchange rate is 6.5327 yuan per dollar. Even in the 2008 financial crisis, RMB appreciation fundamentals have not changed,which is because of domestic reasons and international reasons. Domestic reasons are due to China's sustained rapid economic development which provides the RMB a solid foundation for strong, compared with other countries being on the rise; In addition, under the influence of the surplus of current and capital account, China's foreign exchange reserves are increasing, according to the theory of supply, increased supply of foreign exchange, the prices of foreign exchanged decline, the relative appreciation of the renminbi. Major international pressure is from Western countries, the U.S. trade is deficit in the long-term, financial crisis makes domestic economic developments difficultly, high unemployment and sharp social contradictions, the United States expected to ease domestic difficulties through the revaluation of RMB. Japan also due to the long economic downturn, think that China's rapid economic development in Asia have threated the status of Japanese yen in Asian currency and other reasons consider RMB is long-term undervalued and to appreciate its currency. The impact of RMB appreciation on the three major industries, on one hand it is in favor of the import of advanced production equipment and advanced technology, improving the technology content of China's three major industries and added value, reducing production costs of three major industries,increasing the profitability of domestic trade enterprises; At the same time the increase of imports of foreign products will help ease the tension of domestic resources and reduce the destruction of resources and environmental degradation. On the other hand because of the appreciation of the RMB, the price of China's export product rises,the exports reduce and the impact on related products processing enterprises is relatively large, reducing revenue but also causing some domestic employment pressure.This article analyze the influence which appreciation of RMB brings to industry structure after having known the reasons of RMB appreciation and present situation of industry structure .Adopting the data from 2000 to 2009,the article analyze the impact of RMB appreciation bring to industy structure in positive and negative and draw some suggestion.There are some drawbacks of our industry structure :the agricultural basement is weak and the level of intensive processing is low;the advantage profession is still centralised on labor intensive and resource intensive industry,the high technology and new technology is insufficient;there is still big disparity betwen model service industry and international level.In the whole,the international degree is law and the ability of dealing with the appreciation of RMB is weak.With the development of internationalism and globalization,we must face the appreciation of RMB positively and timely readjust the industry policy which adjust the industry structure,enhance the whole country strength and bring the negative impact of RMB appreciation to the smallest.