Since the reform of the exchange rate mechanism in July 2005, the cumulative appreciation of RMB against the US dollar has exceeded 7%. It is estimated that the trend of RMB appreciation is likely to continue in the future against the background of China's increasing foreign exchange reserves and trade surplus. Although the appreciation of RMB is good news for importers, for exporters, it actually increases production costs and exports will be restrained.

Solution:

One is to choose an agent when exporting and transfer the risk to those foreign trade companies.

The second is to increase the added value of products, implement diversified market structure, and shift the export destination from Russia to South Korea, Saudi Arabia, Dubai and other economically developed countries and regions. Because these countries and regions have strong purchasing power, as long as the products are of good quality, they generally don't mind a little price increase.

Three, in the contract clearly in addition to the deposit, the payment should be paid at the exchange rate of the day. For example, if you pay a deposit of 30% in advance, the remaining 70% must be settled in RMB according to the exchange rate of the day.

Fourth, because most of China's exports are processing trade, a high proportion of raw materials are usually imported for export commodities. Therefore, although the appreciation of RMB reduces the price competitiveness of the final product, we can buy more raw materials and intermediate products. Therefore, the impact of RMB appreciation on export competitiveness is limited.

Fifth, use the appreciation of RMB to enhance the investment ability of enterprises in overseas markets, open up sales channels and broaden overseas investment. This will not only reduce the production costs of those enterprises that use a high proportion of imported materials in their production, but also accelerate the internationalization process of China enterprises.