The Study Of The Strategies Of Small And Medium-sized Foreign Trade Enterprises Under The Background Of RMB Appreciation In China

On July21,2005, China began to implement the new exchange rate system, andRMB appreciated to2%, and showed a continued appreciation situation. This aroused theinterest of home and abroad on the RMB exchange rate issue. Either from academic ordiscussed from a policy perspective, the RMB exchange rate changes on Chineseeconomy, especially the impact of small and medium-sized enterprises are worthy ofanalysis and research. Based on the background of RMB appreciation, the author willstart this thesis writing, based on the small and medium-sized foreign trade enterprises tofurther study how to deal with the RMB appreciation.By describing the reasons for appreciation of the RMB and the analysis of futuredevelopment trend, compared to Taiwan and Japan, this article analyses the impact ofRMB appreciation on China’s small and medium-sized enterprises, especially producingstyle foreign trade enterprises.The paper is divided into five chapters: Chapter1, the impact factors of exchangerate changes and the theoretical analysis of their impact on the economy. It mainlyintroduces the exchange rate changes related to the basic theory. The second chapter isthe Causes and Trends of RMB appreciation. This chapter analyses the internal and outerfactors of RMB appreciation, and conclude that the appreciation of the RMB in a rigidand stable development trend. Chapter III, the impact of the currency appreciation onsmall and medium-sized enterprises: such as Japan and Taiwan for example. Firstly, itanalyses of the background and the reasons for appreciation in the currency of Japan andTaiwan, then further analyses the currency appreciation on the economy and small andmedium-sized enterprises in Japan and Taiwan. Chapter IV, it analyses the RMBappreciation impact on Chinese small and medium-sized enterprises. This chapter firstdescribes the difference between small and medium-sized enterprises and large foreigntrade enterprises. Then further analyses from both positive and negative impact of RMBappreciation on Chinese small and medium-sized enterprises. Chapter V, it suggests smalland medium-sized foreign trade enterprises how to cope with the appreciation of theRMB. This chapter on the basis of Chapter IV small and medium-sized foreign trade enterprises in China should be how to deal with the appreciation of the RMBcountermeasures.This paper argues that the appreciation of the RMB to the international and domesticeconomy will have a certain impact on the economy, especially, there are not only thefavorable factors, but also there are challenges to the small and medium-sized foreigntrade enterprises. Through the analysis of RMB appreciation impact on both positive andnegative aspects of small and medium-sized foreign trade enterprises, the author putsforward a number of specific active coping strategies, and this is an important innovationof this paper.