The Impact And Countermeasures Of RMB Appreciation On Major Industries

Today's world is a closely linked and highly competitive world. In recent years, China's economy has maintained a good development momentum in the world economy, a long time "thriving". In particular, the growth of China's export trade is so great that even some developed countries become envious. People become more optimistic about Chinese economy, and RMB holds an increasingly high interintional status. The broosting economy provides a strong motive for the appreciation of the RMB. While the dollar is continiously declining, the United States, Japan and some other developed countries accused China of expanding its exports by undervaluing RMB exchange rate, so the pressure on the RMB appreciation is highlighted. The RMB exchange rate issue has evolved into a global hot issue.On July 21,2005, China began implementing a new exchange rate system by rasing the RMB exchange rate by 2%, which has shown a situation of sustained appreciation. It aroused an interest in studying the RMB exchange rate among economists and financiers both from home and abroad. Whether from the academic perspective or from the perspective of policy, the impact of the RMB exchange rate to China is worthy of analysis and research. Basing on this background and significance, the author of China's RMB revaluation focuses on the impact on main sectors of China.This paper first gives a brief review of related background and some researchers' viewpoints, and raises that need to study and its significance. Begins with the general theory of the impact of the changes of the exchange rate to economy, using relevant theory and data, and basing on the labor costs of purchasing power parity of the United States for Empirical analysis demonstrated that the RMB revaluation is long-term trends. And analysing from the international experience, the cunent RMB exchange rate system is scientific in nature. Second, it probes into the RMB appreciation to China's industrial structure and major industries. Third, under the current situation, it proveds some advices and suggestions as Countermeasures according to the impact of the continuing appreciation of RMB to major sectors. Finally, combining with the regional economic situation of WEIHAI, it analyses the possible impact of RMB appreciation to WEIHAI, and gives a few Countermeasures.This paper believes that the RMB appreciation will have an impact on the international and domestic economy, and there are favorable factors and challenges in the domestic economy. It mainly Analyses the impact of the RMB revaluation to China's industrial structure, and the beneficial sectors are the real estate industry, the airline industry, the port, tourism, communications Operators ,the power industry and so on. While the textile industry, non-ferrous metals, household appliances, petrochemical industries will be affected negativly by the appreciation of the RMB .The automobile industry ,the steel industry, and the papermaking industrywill be afffected little, which belong to neutral industry. Against the above three sectors, named real estate, textiles and garments, automotive, and other typical industries, it raises the industry countermeaures; against the foreign trade development strategy and foreign trade enterprises dealing with the RMB appreciation, it provides a number of recommendations and measures. It can be known from the impact of the RMB appreciation to the development of trade and economic cooperation in WEIHAI, and according to the economic and trade development of WEIHAI ,export processing approaches to the trade-based, enterprises, trade areas are small-scale and the economic areas and markets are relatively concentratedsuch that the impact of RMB appreciation to WEIHAI is larger. It should be taken a number of measures to cope with the floating exchange rate, which is also an important innovation.