Washington has followed up on the Currency Reform for Fair Trade Act with pressure on Chinese officials during the October IMF meetings and will almost certainly continue pressing Beijing to appreciate the renminbi RMB in the months ahead, particularly if US jobs data remain weak.
China should embrace the new opportunities that appreciation has opened-up and allow more room for the national economy to grow in the process of globalization. People need to be aware that the appreciation of the RMB may have some less desirable effects on economic growth in the short term.
However, there are also many positive aspects to the appreciation of the RMB. In the long run, RMB appreciation will generate more development opportunities.
It will also have a significant influence on the structure of domestic production resources. First of all, it will accelerate industrial upgrading.
In a market economy, the fluctuation of the foreign exchange rate involves the international balance of incomes and expenses and is an important price indicator. The appreciation of the RMB means that the price of various domestic resources, especially land and labor, will go up in relative terms and this will speed up necessary adjustments to the commodity mix and domestic industry.
RMB appreciation will gradually change the value of the international and domestic markets. Domestic enterprises will rely more on sales to the domestic market so that national economic growth is less dependent on export demand and a more reasonable industrial structure will form.
Secondly, it will promote technical innovation. In many countries, technical innovation relies primarily on a market mechanism which makes good use of price as a lever. The appreciation of the RMB will cause an increase in the domestic prices of such things as land and labor as well stimulate the demand for innovation.
Products for export must rely on technological innovation to be more competitive internationally. In the domestic market, enterprises are also forced to compete through technological innovation.
Simply speaking, the appreciation of the RMB will cause the formation of a market environment that is conducive to speeding up technological innovation.
Thirdly, the appreciation of the RMB will benefit the people. On the one hand, it will make imported products relatively cheaper. It will also be cheaper for Chinese to travel abroad. This will increase consumption. On the other hand, it will push up the market price of domestic financial assets, changing the financial market structure.
Of greater strategic significance is the fact that the appreciation of the RMB will make the price Chinese labor price higher.
RMB appreciation reflects the success of Chinese economic development after reform and opening up.The positive effects on US linkage, which might expand the positive or negative effects of RMB appreciation on both economies. With the deepening of global economic integration, RMB appreciation could also impact Sino–US trade and the labor market via other countries’ indirect linkages.
The effects of an appreciation of RMB on other countries are mixed and depend. but would be marginally positive or negative if measured in a global currency.
They are positive for all other countries, with the exception of the US. Researches have shown both internal and external factors can account for the RMB appreciation and both negative and positive effects have been presented on China’s agricultural exports and imports.
Therefore, this project firstly discusses the different causes of RMB appreciation, followed by an evaluation of its impact on China’s. Researches have shown both internal and external factors can account for the RMB appreciation and both negative and positive effects have been presented on China’s agricultural exports and imports.
Therefore, this project firstly discusses the different causes of RMB appreciation, followed by an evaluation of its impact on China’s agricultural trade which finally concludes the overall effects are . currency to continue to supply than demand, highlights the pressure of RMB appreciation.
alphabetnyc.com IMPACT OF RMB APPRECIATION ON CHINESE IMPORT AND EXPORT TRADE alphabetnyc.com APPRECIATION POSITIVE IMPACT ON CHINESE IMPORT AND EXPORT TRADE The continuous appreciation of the RMB, has produced a great impact on China's economy.
Through reviewing the RMB exchange rate system’s reform process in recent years, this article amylases its positive and negative effects for import and export trade in our country, especially the influence on China's main export industry, and the continued RMB appreciation under the trend of study of China's foreign trade policy adjustment, at the .