The Influence And Strategies Of RMB Appreciation On The Export Of HF Paper

Export is an important link to China economy. Export-oriented economy is also one of the main impetuses for yearly rapid growth in economy.HF Paper is located in Shandong Province, with an annual output of30000tons, it mainly products and exports of colored paper. Affected by the continued appreciation of RMB, company’s profit of exporting kept down. At the same time, domestic trade market is stagnant, paper-making enterprises in neighboring countries such as Indonesia, India are in fierce competition, due to these, HF Paper has to give up profits to ensure the sales. With the low margin, the company is on the edge of breakeven operation. HF Paper has been influenced a lot with the reform of RMB exchange rate since2005. Its export business decreased due to the appreciation of RMB exchange rate.Take HF Paper as the research object, this paper analyzes comprehensively on this company running, export sales and profitability in recent ten years. Combining with the RMB exchange rate level and other related export economic environment, it also studies on the change of RMB exchange rate, especially on the significant impact caused by appreciation of RMB in recent years to HF Paper foreign trade business and the possible solutions. At the same time, after combining the data of three levels of enterprise, industry, the country’s foreign trade, and with modeling analysis, this paper proved that the appreciation of the RMB exchange rate has negative influence to HF Paper. At the end of this paper, combining with the researches and the author’s rich export trading experience, it discusses and analyzes how to eliminate the disadvantage caused by appreciation of exchange rate, and how to use the external financial hedging measures.