The Impact Of RMB Appreciation On China Foreign Trade Volume

Exchange Rate is an important part of national economic,which appreciation or depreciation will affect foreign trade greatly.From reform in exchange rate in 2005, appreciation of RMB became an important issue for our economy growth and outward economy relationship.A large number of trade surplus and foreign exchange reserve from fast development of foreign trade,made a huge appreciation pressure to RMB,which forced us to study how this kind of pressure will affect our foreign trade.Based on this background,this paper studies mainly on the impact which is about RMB appreciation on trade balance runs through the full text.First defining the basic concepts,namely exchange rate,trade balance,and so on,we have reviewed the effect of RMB appreciation on trade balance for domestic and foreign literature.On this basis,This paper analyses the status of RMB appreciation and trade balance.Using rate & foreign trade theories(Elasticity Approach Model),this paper analysis RMB appreciation's effect which is to trade balance, and make a conclusion that this kind of appreciation effect is limited.Meanwhile,analyzes the impact of different industries.And more over,we give some advices to the impact about RMB appreciation on trade balance.