How much harm does RMB appreciation do to foreign trade enterprises?
Will RMB appreciation slow down the export growth of foreign trade enterprises? The appreciation of RMB will increase the price of foreign export commodities denominated in foreign currency, and foreign trade enterprises can only reduce their business volume in order to maintain a certain profit. As the production cost of foreign trade enterprises increases and the income of export commodities decreases, the profits of foreign trade export enterprises will drop sharply. This result is not conducive to the continuous expansion of foreign trade exports, nor to the increase of international market share, which seriously affects the export growth rate of foreign trade enterprises in China. Will RMB appreciation lead to the decrease of foreign exchange net assets of foreign trade enterprises? The appreciation of RMB makes foreign trade enterprises suffer exchange losses when the foreign currency of export income is converted into the functional currency of RMB, which leads to the shrinkage of foreign exchange assets of foreign trade enterprises, thus reducing their book net assets.