The Empirical Study Of The RMB Exchange Rate Impact To The Sino-US Trade From The Angle Of Product Categories

No matter in terms of economies of scale, or the influence of the world trade between China and the U.S. is no doubt the focus of the world .The research of the RMB exchange rate impact on Sino-US trade has important practical significance to the development of trade between the two countries and the related policies , the promotion of the harmonious development of two important countries and the world's economy, politics.China's trade surplus with the United States is in the situations of unilateral expansion most of the time. This thesis uses empirical methods from the Angle of product categories, through the measurement of return on different commodities exchange rate elasticity of demand to study the different changes in the process of Sino-US trade, to answer the question that whether the devaluation of the RMB would reduce China's huge trade surplus with the United States.Sino-US trade cover almost all product categories, so only investigate the exchange rate impact on Sino-US trade balance from overall trade situation can not help but too general. Distinguish between different types of industries allows us to get a deeper understanding of the true face of China-US trade.The results showed that only when a small number of categories share large proportion in the overall trade, the reduction of their surplus will more than the increase of other categories after RMB appreciation. Otherwise, simply make the RMB appreciation can not reduce the U.S. trade deficit. AND The scale of U.S. domestic production can not meet the demands of U.S. consumers ,so they only can increase imports from China, which further led to the expansion of China's trade surplus.RMB appreciation is untenable as a means of reducing surplus between China and the U.S., the status of Sino-US trade caused by International division of labor and the Propensity to consume of their people. RMB exchange rate reform should not only focus on the balance of Sino-US trade, but also on benefit the health, stability and sustainable development of China.