The Impact Of RMB Appreciation On China 's Foreign Trade And The Countermeasures

Our country’s international trade developed quickly since the founding of new China. China has become the leading power of international trade in the world.But in the context of the rapid development, China’s exports are most of industrial manufactured goods. Because the labor of our country is very cheap, the number of export enterprises is numerous, China is overcapacity. These goods make China in the lower end of the global industrial chain. China use the corresponding product competitiveness which gets from the export products in the world, in order to obtain meager profits. The RMB has been appreciating many years. So that our country’s international competitiveness of China’s export products disappear, foreign importers are easy to find alternatives. Our country must take measures to cope with the adverse effects caused by the appreciation of RMB. This paper mainly studying the impact of China’s international trade of RMB appreciation, exploring whether there is the impact between the RMB exchange rate and China’s international trade, if it has effect, how influence.Foreign scholars such as Thomas Men, David Hume, Marshall, Lerner and so on, they all do the deep discussion on the influence of the exchange rate influence the international trade, puts forward the price mechanism, Marshall Lerner condition, the J curve effects which are the far-reaching theory in the history of international economy. Domestic scholars have done something related research, mainly studied the influence of the RMB appreciation influence the China’s import and export, some scholars believe that there are adverse effects of the RMB appreciation influence the China’s international trade, such as reducing the export, increasing the pressure of employment, some scholars believe that there are beneficial effects of the RMB appreciation influence the China’s international trade, such as increasing imports, and promoting the adjustment of trade structural, expanding domestic demand.The change of China’s RMB exchange rate system has two turning point, one is in 1994, China began to implement a floating exchange rate system, our China’s exchange rate system ranged from mainly by government regulation to by market regulation, the other one is monetary policy in 2005, China implemented the monetary policy which reference a basket of currency including dollars. This paper analyzes and summarizes the reasons for the appreciation of the RMB, including internal factors and external factors. Including the economic growth in China, the increase of foreign exchange reserve, and the pressure of other developed countries American led to.This article unifies the research results of scholars at home and abroad, according to the actual situation of our country’s economic development, according to the trend of exchange rate fluctuation of RMB and the process of China’s international trade development, to make the analysis of the impact of the appreciation of the RMB influence the China’s international trade, obtains the results that increase in imports in the short term, the long-term expansion of exports, and influenced international trade through two aspects: price and income. The appreciation of the RMB is a double-edged sword, has both favorable and unfavorable effects, this paper made a detailed analysis and summary.In this paper, the theoretical analysis of the needle, establishing the related econometric models, with the help of Eviews econometric tools, made an empirical analysis of the issues of RMB appreciation influence the China’s international trade. Obtains the results that the appreciation of the RMB reduce export and import in the long term, and analyzes the inconsistent with the conclusion of theoretical analysisFinally this article integrates the above conclusion, and put forward corresponding countermeasures. Optimization the export industrial structure, and actively do a good job of enterprise merger, enterprises do a good job in the long-term development plan, government increased government regulation and control, increase high-tech industries’ support, enhance the consciousness of averse interest rate risk, develop domestic industry positively, improve the level of consumption, adjust the employment structure, expand the global trade market. The government should play the role of macro-control, establish a sound related mechanism to deal with the appreciation of the RMB, to better respond to exchange rate fluctuation, to make the economy of our country gets great development.