1. For export, other countries will (mainly) settle in US dollars; For imported products or services, we use foreign exchange to settle accounts with exporters in other countries.

2. RMB/USD appreciation. For example, in the past, RMB 8 = 1 USD, but now it has appreciated to RMB 6 = 1 USD. If the initial cost of 1 product is 16 yuan, you must quote more than $2 to make a profit regardless of the cost; However, if the exchange rate rises to 6, the product with the cost of 16 yuan must be greater than 16/6× 1 = 2.67 USD to be profitable.

But will foreign businessmen accept your price increase? The answer is naturally no, and then what? The dollar quotation remains unchanged, which can only shrink profits.

The exchange rate rose, the export competitiveness declined, and even led to the closure of many small and medium-sized enterprises.