The Effects Of RMB Appreciation On China's Foreign Trade

RMB appreciation has been the focus of debate in economic field the past few years. Many scholars have made different forecasts on the affect that RMB appreciation made on the development of China's foreign trade .And the advantages and disadvantages of the RMB appreciation caused controversy.On July 21, 2005 China's central bank announced that the yuan be appreciated by nearly 2 percent against the US dollar.And the yuan to US dollar pegging system is switched to a managed floating exchange rate regime based on market supply and demand with reference to a basket of foreign currencies.During the past one year, the impact of RMB appreciation on China's foreign trade has been reflected in reality.Based on the analysis of the change of China's trade and the analysis of China's trade structure,the article studied the experience from the appreciation of the yen,and made study on China's tradestructure adjustment. At last we drew the conclusion that slow,moderate appreciation on the RMB will upgrade China's trade structure in long run.The first part of the article recalled the background and the process of the appreciation of the yen.And made analysis on the affect that the appreciation of the yen had made on Japan's trade as well as on the promotion that the appreciation of the yen had made on Japan's trade structure. And compared the conditions of China and Japan.In the 1970s and the 1980s, the Japanese economy has been developing rapidly, expanding trade surplus with the United States.And has caused the Japan-U.S. trade friction during several years. The...