The Influence Of Fluctuation Of Real RMB Exchange Rate Of Chinese Import And Export

The real exchange rate happens after adjustment of price, which depict a country's product competitiveness in the international market. The trade revenue and expenditure between China and American always account for a considerable proportion in balance of payments of China in the recent years .The trade disequilibrium between china an American appears expansion trends, China have become largest trade deficit country to American . American ascribe the large amount of trade deficit to RMB exchange rate.Actually, what's effect of exchange rate on trade revenue and expenditure? This paper make a empirical analysis on the statistic of two countries by the way of co-integration. The empirical results are that the sum of price elasticity of the RMB real exchange rate is limited, ML condition is not unsustainable or don't pass the test by statistic .Our export mainly depends on the national income of foreign country and import depends our real income and appears rigidily. This phenomenon or situation is due to many factors which influence import and export trade in real life. In a certain period ,the effect of these factors surpass the fluctuation of exchange rate and make whole import and export arise some change which is opposite to expectation of the theory. The change of real exchange rate is not crucial in two group of trade. Furtherly, th author analyses the main cause of trade gap between China and American, make a proposal about how to balance tread revenue and expenditure between china and American by adopting combined policy.