On the one hand, the fall of the US dollar exchange rate is beneficial to China's economy in the short term. First of all, the falling exchange rate of the US dollar means that the prices of our products exported to other countries are relatively cheap. This will benefit China's exports in the short term.
Secondly, the decline in the exchange rate of the US dollar has suppressed the confidence in investing in the United States to a certain extent, leading to the withdrawal of some funds from the US market or the slowdown of funds flowing into the United States. However, China's rapid economic growth and increasingly perfect investment environment will be relatively attractive to these funds, thus promoting China to attract foreign investment.
On the other hand, if the dollar is weak for too long and the decline is too large, it will also have a negative impact on China's economic development. First of all, the international attention to RMB appreciation will increase, which will not only increase the trade friction between China and some countries, but also increase the pressure of public opinion on RMB appreciation, which will be detrimental to China's economic development. Secondly, the decline in the exchange rate of the US dollar will make the prices of China's imported products rise relatively and increase the import cost, which will have a certain negative effect on the imported products urgently needed by China's economic construction.