The Research Of The Weakening Effect Of The Appreciation Of RMB On China's Exports

July 21, 2005, China began to implement the managed floating exchange rate system on the basis of market with reference to a basket of currencies. At the same time revaluation of the RMB rises 2 percent against the dollar. From then on the RMB has been on the road of revaluation. On the last trading day of 2007, the exchange rate was 7.3046, according to the exchange rate at 8.11; the total appreciation of the RMB has reached 9.94 percent.Exchange rate formation mechanism reform aimed at improving the market-oriented exchange rate formation, improve the flexibility of exchange rate, to reverse the imbalances of China's economic structure and industrial structure and distortions in the market of factors of production through the impact of exchange rate on the quality and quantity of foreign trade, reduce the trade surplus and ease the trade friction between trading partners.Based on the analysis of exchange rate and the monthly export data, the article draw the conclusion that: The impact of the appreciation of the RMB on export volume and structure is small. Although the appreciation of RMB has been for some time, and the appreciation of the trend will continue. However, the appreciation has not helped to reduce the trade surplus as expected and resolve the existing problems on macroeconomic.As the unique of China's international trade and macroeconomic, traditional and modern international trade theory are unable to give good explanation about the weakening effect of the appreciation of RMB. Therefore, this article Inquiry the causes for the weakening effect of the appreciation of RMB on export. Establish the effect path of the exchange rate; analyze the aspects of domestic supply and international demand. Draw the conclusion that due to the special condition of China's economic and trade development and the international demand for our products impact the transmission mechanism, the effects of the appreciation of the RMB is weakened.Draw conclusions and make Suggestions: China's exchange rate system has undergone profound changes, but the impact on export volume and structure is small, and didn't change the situation of surplus expanding. This reflects a number of deep-seated total, structural and institutional contradictions of China's economic development. Although the appreciation of exchange rate has little effect on short-term, as the appreciation of RMB will certainly become a long-term trend, and its impact will be with the appreciation of the cumulative time and gradually strengthen, its long-term changes must be given adequate attention, so the government, the trade associations and the exporters should take effective effects.