Exchange Rate Changes On China's Home Appliances, Textiles And The Influence Of The Computer Industry

With China’s accession to the WTO in2001, China’s foreign trade showed a momentum of rapid growth. As one of the troika to promote China’s economic development, the compound annual growth rate of imports and exports reached21.40%and21.86%from2001to2010; with the rapid development of China’s foreign trade, China’s dependence on foreign trade reached to49.15%in2010. However, the rapid development of foreign trade to our economy has brought greater uncertainty. Expanding international trade surplus exacerbated by China’s trade friction, and we faced great pressure to appreciate the yuan. Since the exchange rate reform in2005, the RMB began to enter the appreciation channel, the cumulative appreciation reached to25.58%until2010. Especially the financial crisis of2008led to a weak demand global economy and also causes a sharp decline of China’s exports. In this context, research and exchange rate changes is of great significance for China’s export industry. This article will select the three sectors as textiles, home appliances and computer industry accumulated progressive representatives of exchange rate changes, and make relevant policy recommendations for the impact of China’s export industry.This paper selects2000-20010exports of textiles, home appliances and computer products annual data for the samples, starting from the classical balance of payments theory and the use of empirical methods to conduct an empirical analysis of the impact of the three sectors of export of the RMB exchange rate changes. And three export industries that affect differences in the comparative analysis, in order to reveal the different effects of exchange rate changes for China’s labor-intensive industries and knowledge and technology-intensive industries, and development of China’s industrial structure to make appropriate recommendations.