Industrial Upgrading Of The Equipment Manufacturing Industry And Trade Situation In The Context Of The RMB Exchange Rate Appreciation

Since the2005reform of the RMB exchange rate, currency appreciation, comparedwith the U.S. dollar exchange rate has appreciated about30%. Influenced by the majorityof our industry, import and export oriented industries is to be a major shock. Equipmentmanufacturing industry is the basis of China’s industrial system, the various sub-sectors toparticipate in the international division of labor and competition through import and exporttrade, and is bound to face the challenges brought about by the exchange rate changes. Inthis paper, to upgrade the dual impact from fluctuations in the RMB exchange rate on theimport and export of the equipment manufacturing industry and industrial point of view,the analysis of the equipment manufacturing industry how to respond to fluctuations in theRMB exchange rate.Greater impact on the export industry, mostly based on the cost and quantity of thescale of victory for our country, by the appreciation of the RMB, especially large tradedependence on the export of low export price elasticity and smaller scientific andtechnological content of export industries; by the smaller the impact of the appreciation ofthe renminbi is mainly the production of products with high added value, with its ownbrand and stable profit margins of the industry; benefit from the appreciation of therenminbi enterprise imported raw materials or components. Early exchange rate reform,the RMB exchange rate movements in the early negative impact on the import and exportis not large, the import and export of the elasticity of demand, and is still less than1. Withthe further appreciation of the RMB, the situation began to change. Study the establishmentof a simple mechanical and electrical equipment industry in Liaoning Province(electromechanical products) import and export value of the RMB exchange rate between alinear equation, using linear regression analysis were calculated imports, exports andexchange rate movements. The correlation coefficient obtained RMB exchange ratechanges affect the larger conclusions of the equipment manufacturing industry. The sametime, with the appreciation of the RMB exchange rate, the comparison between China and foreign labor cost advantage is gradually narrowing.However, the RMB exchange rate fluctuations also to the development of China’sequipment manufacturing industry has brought new opportunities. Take advantage of theappreciation of the RMB exchange rate, you can speed up structural adjustment andindustrial upgrading, improve product quality and competitiveness of enterprises.Relationship in terms of the appreciation of the renminbi and industrial upgrading, theRMB appreciation will bring at least two effects: First, industry consolidation effect.Appreciation of the RMB exchange rate to bring industry-wide increase in the cost ofexports, the first will be out of a number of small-scale, poor management of the enterprise,the market concentration will be significantly increased, and contribute to the optimizationof the leading enterprises in production and operation environment, thereby promoteindustrial institutions optimization. International effect. Appreciation of the RMB, theenterprises "going out" the cost will fall to promote international investment and M&Aactivity, to promote the process of internationalization of China’s export enterprises. Third,the substitution effect. The appreciation of the renminbi would promote capital, technology,alternative labor. These three effects will have a positive impact on industrial upgrading.From the practice, but also be able to see this positive change.