Appreciation Of The RMB Exchange Rate On China’s Foreign Trade Effects And Countermeasures

In the overall peace and stability of the political and economic environment, our country economy has made the high speed of development, has become a global economic trade power. In the economic starting period, our country faced many difficulties, for domestic financial and technical shortage, and national disposable income is low, the insufficient domestic demand, the economic development of our country to a large extent depend on the development of foreign trade. Due to the huge population and cheap labor, low cost advantage, China’s export products in the international market is very competitive, China’s manufacturing the products are sold to all over the world, exports and imports are in the world. But in the high speed development behind, but there are many challenges, such as labor and raw material costs rise, and low value-added products. Years of account surplus, so that China’s foreign exchange reserve has increased dramatically, and now owns the highest amount of foreign exchange reserves, the western countries with its trade deficit, anxious to the appreciation of the renminbi, to our country foreign trade constitute the challenge.Since the reform and opening up, China’s GDP maintained a close to10%of the growth speed, and become the world’s fastest growing economy countries. In2005, the people’s bank of China on the exchange rate reform, the reform has changed the RMB exchange rate formation mechanism, and give up pegged to the U.S. dollar exchange rate, implement based on market supply and demand with reference to a basket of currencies, adjusted and a managed floating exchange rate system, since then, the yuan began to significant continuous appreciation. In the21st century, China’s rise and appreciation of the RMB has become a topic of global interest. China’s economic rise reflected in a major change in the foreign trade is the import and export trade surplus in our country and the rapid growth, the world economy has become more serious imbalance in the big background, the global Chinese concerns from growth turned to RMB exchange rate. Thus it can be seen RMB exchange rate system has become the relationship between China’s economic continued development of major issues. Because our country opening degree deepening, economic growth is becoming more and more dependent on exports, so the RMB exchange rate fluctuation by influencing the product price on our country import and export trade balance, the influence of the structure is also increasingly obvious. This thesis is to influence fluctuation of exchange rate on trade related theory as the foundation, the integrated use of1980-2011RMB exchange rate and related trade data to analysis the RMB exchange rate change on the balance of the trade, trade structure effect, and on the basis of the actual situation of the RMB exchange rate in the future analysis of RMB exchange rate changes will be to import and export trade influence.In1980-1993, the Chinese currency devaluation appeared, which to a certain extent promote the country’s trade balance situation to improve, so that China’s trade surplus is expanding constantly, trade structure by resource intensive quickly to labor intensive transition. And since1994, RMB appreciation, to our country product export has produced certain negative effect, but the appreciation of the renminbi also promoted our capital and technology intensive industry fast development, promote the industrial structure from labor-intensive to capital and technology intensive transformation, and to enable the industrial structure of our country constantly optimization. A short period of RMB appreciation of small to our country economy development is favorable, at the present stage of our country export product class is not high and the foreign trade dependence is too high, the appreciation of the renminbi pressure increasing, the substantial revaluation will increase the risk of China’s economic development.This thesis six parts:the first part is the introduction, this paper explains the thesis research background and significance, and puts forward the research methods and content; The second part is the literature review, the domestic research status are summarized; The third part expounds the exchange rate and the import and export of the trade relationship between the classical theory; The fourth part analyzes the background of the appreciation of the renminbi and the reasons; The fifth part analyzes the appreciation of the RMB to our country import and export trade structure and the influence of balance of payments, The sixth part from the government and enterprise level put forward corresponding countermeasures and Suggestions.