The Rmb Exchange Rate Changes And Commodity Export Trade Structure Research In China

In the past30years, big improvement is achieved for China’s export structure in terms of types and quantities of export commodities. In the initial stage of China, we export mainly primary product from resource, while74.4%of the export goods is manufactured goods in1990’s. After entry into21st century, the types and quantities of the export increased a lot, and it is same to the share of technology-intensive and capital-intensive products like mechanical and electrical products and high-tech products. After the worldwide financial crisis in2008, our export industry is experiencing a new hard test. China’s export industry is protected by the policy of stable exchange rate in the past several decades, in that same period, China’s export structure transformed from resource intensive products to labor-intensive, and then to technology and capital-intensive in2003. The empirical results indicate that RMB exchange rate changes and labor-intensive products have negative relativity. The RMB appreciation may decrease the export volume of labor-intensive products like clothing and its accessories, shoes, furniture and its accessories, auto parts, plastic products, while it doesn’t significantly impact on technology and capital-intensive products. By studying indirect effect of RMB exchange rate change on export structure, the article shows the RMB exchange rate change increases the long term cost of manufacturers of export commodity, and a bigger appreciation may decrease the types and quantity of export products. A number of enterprises in high quality and foreign enterprises may reduce the cost pressure by transferring their manufacturing, which will hit China’s manufacturing of export commodity the hardest.