Rmb Exchange Rate Changes On China's Import And Export Trade

Since the reform and opening up, the constance of China's opening up is increasing. China's economic growth is heavily dependent on exports. While the changes of the exchange rate affect the price of goods in the international market, and affect China's import and export to a certain degree. This paper studies the effects of the changes of the RMB exchange rate on China's imports and exports, based on the theory of the impact of the changes of exchange rate on trade, using 1980-2008 annual RMB exchange rate and import and export trade data to analyze the impact of the change of RMB exchange rate on trade balance,trade structures; At the same time, I will analyze other factors which affect the trade balance and structure on the basis of the influence of RMB exchange rate.Obtained by analyzing the impact of the changes in exchange rates on trade balance: the devaluation of the RMB from 1981-1993 improved the trade balance to some extent, and the surplus continued to widen; the appreciation of the RMB since 1994 didn't inhibit the expansion of trade surplus. The policy and other factors affected the trade balance much more than the changes of exchange rate.The relationship between the changes in exchange rate and trade structure as follows: the devaluation of RMB changed China's trade structure from the resource-intensive to labor-intensive; The appreciation of the RMB has promoted China's capital and technology-intensive industries, the promotion of China's industrial structure from labor-intensive type to capital and technology-intensive type. It optimized the industrial structure in China.On the basis of the effect of the RMB exchange rate on import and export, I fatherly analyze other factors which affect the trade balance and structure, and find the appreciation in a little scale avails the development, but now the level of merchandise is low, the economy is too much depend on exports, the appreciation in high level will go against the development. Finally I will make relevant recommendations to the government,enterprises to deal with RMB appreciation.