1 is conducive to enhancing the competitiveness of export enterprises and optimizing the industrial structure of China's export commodities.

Historically, China's export enterprises have been in labor-intensive rough processing in foreign trade, and the import of raw materials and spare parts contains a large proportion of added value. Most products lack innovation and competitiveness, and the core technology is insufficient or even missing. The core and marketing strategy of independent brands are easily influenced by multinational companies. The appreciation of RMB can accelerate the transformation of industrial structure in China, and remove the links of high technology content, low added value and poor management in manufacturing industry.

2. It is conducive to changing the export growth mode and promoting the adjustment and upgrading of industrial structure.

The appreciation of RMB promotes the transformation of China's foreign trade export growth mode from extensive to intensive, and from labor-intensive industries to technology-intensive and capital-intensive industries. The growth mode of foreign trade should change to the growth mode of independent intellectual property rights and high value-added products, and the adjustment and optimization of import and export trade structure will promote the adjustment and upgrading of domestic industrial structure.

3. It is conducive to reducing trade frictions and anti-dumping lawsuits and striving for a more relaxed international environment for China's import and export enterprises.

In recent years, China's import and export industry has been in a high-speed development stage, and it has been in a state of double surplus of international payments, which has also caused trade friction among China's trading partners. If the RMB appreciates moderately, it can reduce friction, at the same time, it will also help to reduce foreign economic sanctions on China products and create a relatively relaxed international environment.

4. It is conducive to narrowing the technology gap, product quality and brand gap between domestic and foreign enterprises.

The appreciation of RMB will enhance the purchasing power of China enterprises, correspondingly increase imports, and make China import and export enterprises realize the gap with the world's advanced technology level, develop the level of science and technology, improve labor productivity and enhance their competitiveness.

5. Stimulate import and export enterprises to join the international division of labor. After the appreciation of RMB exchange rate, the price of export commodities will increase, which can restrain the vicious and disorderly low-price competition among manufacturers. After the appreciation of RMB, China's commodity grades will also be improved, which will ease the sanctions imposed by trading partners on China's commodities, increase the market share of export commodities, increase trade interests, and be conducive to better participating in the international division of labor.

6. Optimize China's foreign trade conditions.

After the appreciation of RMB exchange rate, China's commodity import and export structure will be improved to some extent, and the added value of commodities will increase, but the price will also increase accordingly. However, the prices of raw materials and commodities imported by foreign countries have fallen, which has improved the terms of trade to some extent.

counteraction

1 is not conducive to the competition in China's domestic market.

With the appreciation of RMB, the import of foreign goods will increase, and the price of exporters will increase relative to foreign goods. However, the price of foreign goods in China will decrease, and domestic consumers will buy more goods at the same price as usual. In this way, the sales volume of China's export commodities will drop, foreign commodities will re-enter China, and domestic enterprises will face the impact of "good quality and low price" of foreign commodities.

2. The decline in export volume makes it difficult for traditional industries to survive.

The biggest impact of RMB appreciation on export-oriented enterprises is the relative increase of export prices. This means: on the one hand, the price increase leads to the decline of the price competitiveness of our products in foreign markets, and the price advantage is precisely the real vitality of many China enterprises; On the other hand, the export income of export enterprises will be converted into RMB exchange losses, and the losses caused by the decrease in export volume will reduce the profits of export enterprises.

3. The loss of international settlement and its later impact on the profit rate of enterprises.

In order to cope with the losses caused by RMB appreciation, many foreign trade enterprises directly raise prices or settle accounts according to the exchange rate at the time of delivery. For foreign importers, this is equivalent to raising product prices, causing some products to be transferred to neighboring countries, resulting in a large loss of orders and customers.

4. It is not conducive to continuously attracting foreign investment, resulting in a decrease in foreign direct investment.

The appreciation of RMB exchange rate has increased the cost of foreign investment in China. In this way, in order to reduce costs, foreign capital may choose other ways to enter the China market, which not only increases the speculative risk, but also affects the development of China entity enterprises.

5. The cost of China's export enterprises has increased.

The appreciation of RMB exchange rate increases the price of China's export commodities, which is not conducive to the formation of China's export commodity price advantage, affects the play of China's relative comparative advantage, and increases the difficulty for China to further explore the international market. Judging from the international division of labor, compared with developed countries, most of them are technology-intensive enterprises, while China is mainly manufacturing, which is greatly affected by the change of exchange rate level. From the perspective of division of labor elements, China's low labor cost is our advantage, but the products have low technical content, low grade and low added value. If the RMB appreciates, the production cost and labor cost of export products will rise, while the international market price will remain unchanged, then the decline in export profits will affect the enthusiasm of enterprises to export.

6. The appreciation of RMB will lead to the change of commodity structure, thus affecting the interests of some regions and residents. The export growth rate of resource-based commodities, some bulk agricultural products and low value-added manufactured goods slowed down or even declined. In the short term, the economic development of the central and western regions, which are highly dependent on resources and mainly export agricultural products, has slowed down, reducing the income of low-skilled workers.

7. The growth surplus of trade with Europe and America may slow down, but it will continue to be unbalanced.

Due to rigid demand and structural complementarity, even if the exchange rate of RMB against the currencies of the three major partners of the United States, Europe and Japan appreciates slightly, the trade surplus between China and Japan will still be huge, but the growth rate of the surplus will slow down.

Source: On the Impact of RMB Exchange Rate Appreciation on Import and Export Enterprises in China.