First, the theoretical drawbacks of RMB appreciation

1. RMB appreciation will lower the import price and increase the export price, thus stimulating imports, curbing exports, reducing the surplus or even deficit of international trade, causing some enterprises to have difficulties in operation, reducing employment, especially increasing imports of some agricultural products, and affecting farmers' income.

2. RMB appreciation will increase the cost of foreign direct investment, which will have a certain adverse impact on foreign direct investment, thus restricting the increase of foreign direct investment.

3. RMB appreciation will increase the cost of foreign tourists coming to China, and the number of foreign tourists may decrease, which will have a negative impact on tourism.

4. After the appreciation of RMB, the national foreign exchange reserve will depreciate.

After the appreciation of RMB, the country's membership fee in the United Nations will increase accordingly.

Second, the theoretical benefits of RMB appreciation

1, RMB appreciation is conducive to domestic capital investment overseas, breaking the technology blockade of developed countries, indirectly introducing foreign advanced technology, and promoting the technological progress of domestic enterprises.

2. The appreciation of RMB is beneficial for domestic enterprises to invest in developed countries with relatively devalued currencies to establish domestic commodity sales networks, and it is also conducive to reducing advertising expenses in these countries, combining import and export with overseas investment, and improving the comprehensive economic benefits of China's export enterprises.

3. RMB appreciation reduces the price of imported raw materials, which is conducive to improving the international competitiveness of "three to one supplement" enterprises.

4. RMB appreciation will reduce the repayment cost of using foreign loans and improve the efficiency of enterprises using foreign loans.

The appreciation of RMB will reduce the cost of importing advanced machinery and equipment and improve the investment benefit of domestic enterprises.

6. The appreciation of RMB will reduce the cost of importing oil and make China's oil trade gain huge profits.

7. The appreciation of RMB will improve the profit level of most export enterprises, help China's export enterprises to upgrade their technology and products, and enhance their competitive strength and sustainable development ability.

8. After the appreciation of RMB, the amount of RMB used by the state to purchase foreign exchange is relatively reduced, which reduces the monetary input and is conducive to preventing inflation.

9. The appreciation of RMB has improved the international purchasing power of domestic consumers, increased overseas travel and improved living standards.

10, the appreciation of RMB improves the self-confidence of domestic consumers and is conducive to promoting consumption upgrading.

Third, the theoretical drawbacks of RMB appreciation may not become a reality.

1. A considerable proportion of China's imports are used for "three supplements" processing and will eventually be exported. Therefore, the increase in export costs caused by RMB appreciation can be partially offset by the decline in the prices of imported raw materials.

2. The price of many export products in the importing country's market is several times higher than that in China. Therefore, the increase in export prices caused by RMB appreciation will not affect the demand of importing countries for our products.

3. After the appreciation of RMB, it will be a kind of praise for foreign capital entering our country, and it will be a kind of stimulus for foreign capital who wants to enter our country, because whether it is commodity market or money market, when the market changes, there is speculative psychology of buying up instead of buying down. If the expectation of further appreciation of RMB is formed, it will prompt more foreign investors to make a decision to invest in China.

4. As China's current foreign trade continues to maintain a surplus, and the demand for many import and export commodities in China is strong, the positive impact of RMB appreciation will outweigh the negative impact.

5. The appreciation of RMB against USD may increase the domestic inflation rate in the United States, thus offsetting the impact of RMB appreciation on the price increase of China's exports, and may also stimulate China's exports to the United States. Countries where other currencies depreciate against the US dollar will inevitably see an increase in inflation rate, which will offset the stimulating effect of currency depreciation on exports and the inhibiting effect on imports of these countries.

6. RMB appreciation will have a certain impact on the operation of some industries, some industries will be impacted by imports, and some industries will lose benefits because of the reduction of exports. However, from the perspective of the national economy as a whole, the total wealth of the people will increase after the appreciation of RMB, not only the newly added use value will increase substantially in that year, but also the entire stock assets of the country will appreciate substantially in dollar terms, thus narrowing the economic gap between China and developed countries.

7. The impact of RMB appreciation on agricultural products market can reduce farmers' income and promote the adjustment of agricultural production structure. If farmers' production is properly guided, the impact will be alleviated and the disadvantages will be transformed into advantages. At the same time, the impact of imported agricultural products on the domestic market can be reduced by controlling the import quota of agricultural products.

8. Due to the high expectation of RMB appreciation in western countries, a small appreciation of RMB will lead to the expectation of further appreciation of RMB, which will increase the imports of China products in a short time and increase China's trade surplus, which will help to prove that the sharp increase of China's product exports is not caused by RMB undervaluation, which will break the accusations of western countries against RMB and give China the initiative on the exchange rate issue.

9. Since the currencies of neighboring countries are mostly pegged to the US dollar, the appreciation of RMB will not directly affect the export to the United States, but will enhance the competitiveness of neighboring countries for China products in the US market, thus crowding out the US market for China products. This needs careful study. However, since a considerable part of China's products exported to the United States are re-exported through Hong Kong, the appreciation of the renminbi is conducive to the increase of Hong Kong's re-exports, which can resist the exclusion of neighboring countries and is also conducive to Hong Kong's economic development. Therefore, if the RMB appreciates, Hong Kong will benefit the most.