Investigation Of Sino-US Trade Imbalance Under The Trend Of RMB Appreciation

As the biggest developing country and developed country respectively, China and the US altogether have witnessed a fast development of their bilateral trade relation, with sustainable and rapid growth in trade value. However, the serious trade imbalance between these 2 countries has jeopardized the healthy development of Sino-US trade relation, resulting in continuous trade fraction. Especially, in recent years, the soaring trade surplus of China against the US has intensified the trade fraction between these 2 countries, which is quoted by the US to force China to make RMB appreciation.Under these conditions, starting from July 21, 2005, China reformed the exchange rate regime by moving into a managed floating exchange rate regime based on market supply and demanded with reference to a basket of currencies. RMB was no longer pegged to the US dollar and adjusted to 8.11 yuan per US dollar, or revalued 2%. Afterwards, the exchange rate of RMB against US dollar has initially experienced a phase of slight appreciation, and then presented a trend of relative fast appreciation. Based on the current situation, the exchange rate of RMB against US dollar would enter "6 Yuan" Era soon. But on the other hand, the Sino-US trade imbalance has not been well changed.This paper first proved that the RMB appreciation can not fundamentally change the trade imbalance of Sino-US trade relation, based on the practical situation of Sino-US trade after the exchange rate reform, and then more profoundly analyzed the reasons which cause the Sino-US trade relation with related economic theories. Further, this paper reviewed the Plaza Accord and finally suggested the measures for dealing with Sino-US trade issues under the condition of RMB appreciation. This paper cited the latest research and related English or Chinese materials and data, which will certainly be helpful for the pointed suggested.