Rmb Appreciation On China's Agricultural Trade And Response Measures

The People's Bank of China announced on 21st, July, 2005 that RMB exchange rate will not only adjust according to USD,which will carry out the floating exchange rate system. From that time on, the RMB appreciation will be a resuming trend compared with the USD. According to our common sense, there will be two aspects due to RMB appreciation. On the one hand, with increase of the actual purchasing ability of RMB, China's import will be promoted. On the other hands, the price of our export commodity will increase so that the export will decrease .As for the impacts on our agricultural industry. For one thing, the export price of agricultural industry will enhance, which is the disadvantage for the farming product's export. For another, it might produce great shock on our agricultural industry under the situation that our agricultural products is less competitive in the international market if the foreign farming products enter into China's market with a comparatively low prices .This article, which adopted the statistics between July, 2005 and December, 2008, analyzed the RMB appreciation's impact on agricultural trade. The conclusion is that the change of RMB exchange rate has no closely relationship with agricultural export while there will be impact on agricultural import. Faced with agricultural trade deficit and as an agricultural country, we should adopt positive attitude on RMB appreciation and enhance our agricultural product's competitive ability to minimize the negative impact on trade of agricultural product and agricultural industry.