The Study Of Impact Of RMB Appreciation On The International Competitiveness Of China’s Manufacturing Industry

After Financial Crisis in2008, the pressure of RMB appreciation is increasing.How manufacturing as the leading industry in China, especially its internationalcompetitiveness of industry will be affected under such a pressure, has become anurgent concern. As the existing research about the impact of RMB appreciation on theinternational competitiveness of China’s manufacturing industry is mainly concentratedin export competitiveness, this article studying the full impact of RMB appreciation onthe international competitiveness of China’s manufacturing industry throughconstructing the evaluation index system of international competitiveness of China’smanufacturing industry, has important theoretical and practical significance.This article studies the impact of RMB Appreciation on the internationalcompetitiveness of China’s manufacturing industry mainly from two aspects oftheoretical and empirical. First, based on the previous definition of industrialinternational competitiveness, this article gets the definition of the internationalcompetitiveness of China’s manufacturing industry. China’s manufacturing industryinternational competitiveness evaluation index system—Three-Level Causal EvaluationIndex System is got on the base of the definition of China’s manufacturing industryinternational competitiveness and the Jin Bei’s Causal analysis model theory; Second,the mechanism of the RMB appreciation impact on the international competitiveness ofChina’s manufacturing industry is explained in this article, as well as the way ofaffecting; Third, using data from1994to2010, this article analyzes the impact of RMBappreciation on the international competitiveness of China’s manufacturing industrythrough cointegration analysis, ECM model, with eviews6.0, getting the result ismultifaceted. The appreciation of the RMB is conductive to the improvement of ourmanufacturing capacity and profitability, but mainly because of China’s manufacturingindustry is based on low value-added, low-tech products, RMB appreciation impact onthe market competitiveness of China’s manufacturing industry is negative.This article concludes that the negative impact of RMB appreciation on theinternational competitiveness of China’s manufacturing industry is mainly caused byChina’s backwardness manufacturing industrial structure. Optimization of theindustrial structure of China’s manufacturing industry is a purifier to improve theimpact of RMB Appreciation on the international competitiveness of China’smanufacturing industry. As long as the industrial structure of China’s manufacturing industry is optimized, the negative impact will become less and the positive impact willbecome more.