1、 RMB appreciation Abstract: At present, the RMBs appreciation has attracted wide attention because exchange rate movements on the impact of a countrys economy and international interests of all economies is closely related to Caused by the yuan appreciation are also external factors, both internal a
2、nd therefore a variety of measures to be taken and requested the co-ordination of the main stakeholders in order to cope with the impact of the appreciation. This paper analyzes the causes and impact of RMB appreciation that the appreciation should seize the opportunities and to actively respond to
3、challenges, to avoid sharp fluctuations in the Chinese economy. 一 .An appreciation of the renminbi because （ 1） .An appreciation of the yuan external causes First, the RMB revaluation pressure from the United States. The US government believes that the long-term Sino-US trade surplus with the US dol
4、lar and Chinas pegged exchange rate policies, the depreciation of the dollar can be put into the role of trade, but to make Chinese products more competitive, there is an urgent demand appreciation of the RMB.However, the US trade deficit is determined by its sharp increase in foreign direct investm
5、ent is too large, personal consumption expenditures is much higher than savings, and so a variety of factors, appreciation of the renminbi alone could not rescue its economy recession.Secondly, the pressure from Japan. 90 years since the Japanese economy has entered a long period of depression, inex
6、pensive Chinese products in the Japanese market share rising, the Japanese government that the low prices of Chinese goods to foreign sales, not only Japans current account deficit in the state, but also to the Japanese domestic market has brought the threat of deflation.Therefore, Japan strongly wa
7、nt to change the yuan revaluation of the domestic economy continues to slump and the decline in international competitiveness of the state.Once again, the pressure from the European Union.The continuing depreciation of dollar against the euro makes the link with the devaluation of the yuan against t
8、he euro, is also relatively recent years, China-EU trade continued to grow, the depreciation of the renminbi against the euro, European companies in China led to the rising costs of goods, business loss, then Canada, the European Union and other countries and regions have to revalue its currency in
9、order to take some of the effects of dollar depreciation. （ 2） the internal causes of the appreciation of yuan First of all, Chinas capital projects and current double surplus led to the huge foreign exchange reserves are the most important internal reason for the yuan appreciation. Second, Chinas c
10、ontinued rapid economic growth laid the economic foundation of the RMB exchange rate. Moreover, the United States spreads upside down has further boosted the yuan appreciation.Chinas current excess liquidity there and asset prices, inflation rates remained high, the central bank needs to tighten mon
11、etary policy to deal with these issues, including improving the RMB deposit and lending rates.However, the US interest rate cut in a row after the rate cut is still possible, the situation of Sino-US spreads upside down from the United States makes a large number of short-term capital outflows are m
12、ore likely to flow into China, causing upward pressure to the yuan. 二 the RMB appreciation on Chinas Economy (1) The appreciation of the renminbi reduces the profitability of Chinas export products Yuan revaluation, if Chinas commodity prices in foreign currencies marked change, places yuan marked p
13、rices, in this case, although Chinas exports will not be affected, but the corporate profit margins will decline.If the price of the RMB marked change, places mark up the price of foreign currency, Chinas export products in the international market, declining competitiveness, reduced exports, corpor
14、ate profits will fall.Yuan revaluation caused a decline in level of corporate profit margins out of date due to the different types of products and different.For the primary products of its labor-intensive products and low value-added products, the most influential of these products is to use cheap
15、labor to reduce internal costs, export prices down in order to obtain the international competitiveness of the industry itself, due to intense competition, small profit margins appreciation of the yuan to its greater impact. Its for the deep processing, with higher value-added, as well as enterprise
16、s with independent little effect on national brands, or even no effect.Export products of these enterprises have the advantage of non-price products, companies can negotiate with the client consultation, lock exchange rate risk, etc. to resolve to reduce the pressure on profits. (2) appreciation of
17、the renminbi is conducive to reduce import costs and improve trade structure For the import-dependent companies, the RMB appreciation to lower import prices of products, the same funds can import more resources, enterprise importing raw materials and the more the better it will reduce production cos
18、ts, improving product competitiveness.RMB appreciation is also really beneficial to Chinas enterprises to import advanced equipment, the introduction of the scarcity of technological achievements, and the promotion of enterprise products upgrading and improve productivity. An increase in imports in
19、the short term may lead trade deficit, but in the long run, the survival of the fittest caused by appreciation of the renminbi and the reallocation of resources will play an adjustment of trade, export structure, promote industrial upgrading effect.For Chinese enterprises to go global, improve trade
20、 structure and opportunities. (3) The appreciation of the renminbi to promote enterprise product upgrades Appreciation of the RMB to bring pressure for export enterprises and enhance their own competitiveness of its order to reduce the adverse impact of the appreciationAlthough China has an export t
21、rading power.However, the structure of export products is still dominated by labor-intensive, capital-intensive products, most of which are from the processing trade, a very small proportion of high-tech products, export products are mostly dependent on low-cost-based price advantage.Chinese enterpr
22、ises need to change the thinking, the price becomes a quality win to win appreciation of the yuan could to a certain extent, to promote export enterprises to adjust product structure, from production of primary products with low added value to gradually shift production of high technology products,
23、while promoting business technical innovation and management innovation: （ 4） the RMB appreciation on Chinas international balance of payments impact In theory, a countrys currency exchange rate makes the countrys foreign currency prices of goods, external goods prices in this currency, which reduce
24、d exports, increased imports, the countrys trade surplus to reduce or turn to deficits.However, since the appreciation of the RMB has been.Chinas trade surplus is not reduced, but still continued to increase. （ 5） RMB appreciation on Chinas capital flows Capital, including the long-term investment c
25、apital and short-term speculative capital appreciation of the renminbi is significantly influenced by these two kinds of capital.Makes the appreciation of foreign currency converted into an equivalent value of the yuan down, and will enhance our production costs relative to other countries, especial
26、ly labor costs, investment income less profitable, leading to foreign direct investment in China will be reduced.The short-term capital inflows in general there are two reasons, first, the short-term interest rates are at a high point, or still higher, the second was about the short-term exchange ra
27、te appreciation, the current domestic existence of an upward trend in interest rates and exchange rates would give rise to short-term capital inflows.This is because the appreciation of the renminbi is expected to remain the case, if the appreciation of foreign currency into RMB before, so that inve
28、stors receive the appreciation and the appreciation of the magnitude corresponding benefitsAfter the short-term capital inflows will be a substantial flock to stocks and real estate sectors, these capital addition to proceeds from the appreciation of yuan would be value-added benefits.To speculative
29、 inflows of capital for the purpose of export and trade surplus will lead to overvalued, greater external imbalances. （ 6） RMB appreciation on Chinas employment In theory, in a perfectly competitive market, exchange rate movements affect the import and export trade through further impact employment
30、in related industriesThe increase in exports will lead to the increase in employment related industries, while imports increased employment will be two effects: first, making a direct reduction in domestic employment in the same industry； the second is that if the imports are intermediate products,
31、it will stimulate an increase in output and thus increase employmentIn general, the currency depreciation would promote job growth, unemployment is down； currency appreciation makes reduction in employment and rising unemployment.Relevant departments of a country or the higher degree of openness, ex
32、change rate fluctuations, the greater the impact on employment. 三 .Chinas foreign trade enterprises ways to deal with the appreciation of yuan Continuing the current US dollar weakness is still the main reason is to accelerate the appreciation of the RMB. Market for the US economy into recession is expected to become increasingly strong, the Fed may still cut interest rates to stimulate future market
