The Impact Of RMB Appreciation On China’s Steelproducts Import And Export Trade

RMB exchange rate reform since2005, China’s economy maintained a rapiddevelopment, the scale of foreign trade is also growing, especially in recent years,China’s foreign trade surplus has increased, until December2011, China’s foreignexchange reserves have more than3trillion U.S. dollars. The huge foreign exchangereserves of China’s exports and prosperity at the same time push China on the cusp ofthe international political arena. In recent years, Sino-US trade surplus is too large;the United States continues to let the pressure the Chinese government, forcing theappreciation of the RMB against the U.S. to change the status quo of Sino-US tradeimbalance. Since the2008financial crisis prompted the Chinese government toreform the exchange rate management system to accelerate the appreciation of therenminbi. RMB appreciation on China’s export industry is a blow to China’s totaltrade surplus; China’s exports are mainly labor-intensive products, low-tech,value-added products. Appreciation will inevitably produce damage to these industries,but China’s import trade is good news, especially imports of raw materialsmanufacturers can help reduce production costs, the Chinese iron ore imports inrecent years, continued growth, the appreciation of the renminbi can significantlyreduce the cost of domestic steel companies to purchase iron ore and reduce overseasshipping costs, to a certain extent offset by the international iron ore prices rising costpressure to iron and steel enterprises. Instead, the appreciation will inevitably affectChina’s steel exports of manufactured goods; to reduce the internationalcompetitiveness of a certain degree of impact caused the steel industry.Research yuan appreciation of the impact of import and export of iron and steelindustry in China, on the one hand, to explore the relationship between theappreciation of the renminbi and the imports of steel products, analysis of theappreciation of how to reduce the cost of imports of iron and steel enterprises toincrease competitiveness, and based on the appreciation of the background and theexpected the development of iron ore imports and development path, and thus providesome insight into the overall layout and development of China’s raw materialresources; analysis of RMB appreciation on the inhibition of the iron and steelmanufactured exports, through theoretical analysis and empirical analysis todetermine both this in the end What is the connection and how much contact, andprovide a theoretical basis for the Chinese steel companies import and export ofstrategic adjustment. Finally, integration of import and export of two aspects of thesituation, summed up the impact of RMB appreciation on China’s steel products import and export trade, which is how to adjust the import and export of China’s steelindustry in the face of appreciation of the renminbi is expected to optimize the overallindustrial layout has a certain guidance.