The Effects Of RMB Exchange Rate Changes On International Trade Of China

Exchange rate movements impacting on the trade of country has been a hot research in the field of international trade. Since the RMB exchange rate reformed in the July of 2005,the discussions about the RMB exchange rate impacting on the trade of China is endless. Now, the international trade protectionism appears because of the sub-prime crisis. The China government tries to maintain the RMB exchange rate stable with the right and responsible attitude. However, the United States and the other countries of Europe condemn frequently the measure that is sensible,rational and scientific.We research the RMB exchange rate impacting on the trade of China in different period. There are so many factors that affect the trade of a country. I want to show the RMB exchange rate impacting on the trade of China faithfully,so the following framework is designed. I use the econometric methods to show the long-term and short-term effects that the change of RMB exchange rate impacts on the trade of China. Then, I research the reason of the current status of the RMB exchange rate remained stable and the impact on the trade of China. Finally, some advices that are about maintaining the RMB exchange rate stable and export are given from the resurgence of the pressure on the RMB exchange rate appreciation and Sino-US trade friction to upgrade.