Research On The Influence Of The Exchange Rate Of RMB To Chinese Tea Export

China is a big country of tea production and export, as one of the Chinese traditionalindustry, tea industry is one of the most important one in agricultural products export trade inour country. However, with the progress of science and technology, Chinese tea export in theinternational market encountered a lot of trouble, domestic trouble and foreign invasionmakes the Chinese tea export facing a huge challenge," green barrier", tea quality and safetyhas become China’s tea exports’one of the main problems. At the same time, in order toaccelerate the development of their country’s economy, many country give much pressure onthe appreciation of the exchange rate of RMB, which led to a substantial increase in China’stea export prices. So it is very important to improve the current situation of China’s teaexports, seeking the source of the problem and proposed solutions to this problem, to seek abreakthrough for long-term development of China’s tea exports. This paper aims to on thebasis of understanding the change of RMB exchange rate and China’s tea export tradedevelopment,exploring the influences between them. And on the foundation of the datebetween1994to2011, making descriptive analysis and regression analysis to find whether thetea export trade exists hysteresis effect by the change of RMB rate.Finally, in the light of theexisting problems find the corresponding solutions.This paper first discusses the RMB exchange rate in recent years and the status ofChina’s tea export trade, a brief review of research literature and then put forward the theoryof “Marshall-Lerner Condition” and the “J-curve effect". In the tea export trade-related datacollection of1994to2011, based on the use of modern econometric methods to detect,confirmed the phenomenon that the foreign trade of China’s tea exist "Marshall-LernerCondition" and "J-curve effect". Finally, according to the problems in China’s tea exportscombined with the results of empirical analysis, put forward the policy recommendations:weshould first strengthen the quality of tea in China and develop more effective test of thequality of the tea while enhancing the development of China’s tea industry. Secondly, weshould focus on technological innovation, higher value added products and optimize the tradestructure. Furthermore, we should be fully aware of the J-curve trends in the tea trade in orderto find the development of export potential of tea. Finally, we should develop our culturaladvantage to build the brand of tea. Ultimately to promote China’s tea export trade from the current price of competitive advantage to the competitive advantage of technology brands.Through Empirical and theoretical analysis, we can draw the tea industry in Chinabelong to the general processing trade industry, its main competitive advantage is differentfrom other countries mainly in technology, brand competitive advantage of the processingtrade industry, but most of them rely solely on price-competitive, so Chinese tea exports willbe subject to the impact of the RMB exchange rate changes and a positive correlation. And onthe basis of assumptions, taking into account the impact of exchange rate changes to gothrough a period of reaction time is the time delay effect, confirmed by the existence ofJ-curve effect that exchange rate changes on tea export trade will be one year lag. AndChinese total production of tea have little effect on China’s tea export trade.