The rising prices of imported energy and raw materials will not only raise the prices of the whole basic means of production, but also devour the profits of enterprises in the middle and lower reaches of the industrial chain, making their profitability decline or even lose money. If the RMB appreciates to a reasonable level, it will greatly reduce the burden of importing energy and raw materials in China, and enable domestic enterprises to reduce costs and enhance their competitiveness.

Use the "reverse mechanism" to promote the adjustment of industrial structure in China and improve China's position in the international division of labor. For a long time, China relied on the expansion of cheap labor-intensive products to implement the export-oriented strategy, which made the export structure not optimized for a long time and made China play the role of "world wage earners" in the international division of labor.

Appropriate appreciation of RMB will help export enterprises to improve their technical level and product grade, thus promoting the adjustment of China's industrial structure and improving China's position in the international division of labor.

Extended data:

The appreciation of RMB will not have a substantial impact on foreign investors who have already invested in China, but it will have a negative impact on foreign investors who are about to invest in China, because it will increase their investment costs. In this case, they may transfer their investment to other developing countries.

Once the RMB appreciates, in order to keep the bottom line of RMB price unchanged, the price of China's export products in foreign currency will increase and weaken its price competitiveness; If the foreign currency price of export products remains unchanged, it will inevitably squeeze the profit space of export enterprises and have an impact on export enterprises, especially labor-intensive enterprises.

Baidu encyclopedia-RMB appreciation