The RMB Exchanange Rate Changes On China’Industrial Structure Adjustment

After the implementation of exchange rate reform in our country since2005,The RMB against the US dollar is on the rise,The RMB appreciation by more than35%.The RMB exchange rate fluctuations impact on our country economy is complicated, not only does it affect the domestic price level, the trade structure and foreign direct investment, Also have a major impact on our country’s industry structure. So under the background of The RMB appreciation, explore the RMB exchange rate fluctuations on the adjustment of the industrial structure in China is particularly important.This paper is to use the selected data analyzes the evolution trend of exchange rate system and the change of industrial structure process, combining with the actual situation of our country, from two angles of foreign trade and foreign direct investment to study the influences of the exchange rate for the adjustment of the industrial structure. Followed by using unit root test and cointegration test to exchange rate fluctuations impact on the industrial structure of channels of empirical research. Again is through the establishment of the VAR model and impulse response degree of impact on the exchange rate volatility on industrial structure adjustment for empirical research. Finally according to the empirical results, combined with the actual situation in our country, corresponding Suggestions are given.The results showed that:The first, Foreign trade and FDI in the two channels of influence, and foreign trade’s impact on industrial structure adjustment is greater than the effect of FDI. The second, In empirical research in the country, The RMB exchange rate was not significant effect on the first industry in China, the RMB exchange rate appreciation would promote the development of the third industry, but will hinder the development of the second industry. According to the empirical results, combined with the actual situation of our country, suggestions are givenr:Insist on exchange rate policy of promoting effect;play the guiding role of foreign trade; play the positive role of foreign direct investment;the development of the coordination of regional industrial structure.