A sharp appreciation of the renminbi and a decrease in exports will inevitably affect economic growth and deepen unemployment. A sharp appreciation of the renminbi will hit almost all export industries. However, industries that enjoy low-interest export loans, export tax rebates and even domestic export subsidies are less affected than those that do not receive such preferential treatment. Most people who enjoy preferential treatment are uncompetitive industries. Relevant industries or local governments strive to maintain production in order to win over subsidy income. These uncompetitive industries can only survive by subsidies. However, many industries that have not received preferential treatment are competitive industries. Due to the lack of government subsidies, their production and exports are affected, and as a result, they are the first to close down, resulting in reverse elimination and deterioration of industrial structure.

Many export products cause pollution in the production process. Although the government has formulated laws and regulations for prevention and control, those who do not abide by the law have not invested in pollution prevention and control as required, and the pollution caused has been pushed to the society. Therefore, the production cost is relatively low, and even after the RMB has greatly appreciated, the products of these enterprises can still be exported. On the other hand, law-abiding manufacturers are not as competitive as the former because they bear the treatment cost of pollution prevention and control. After the sharp appreciation of the RMB, they were unable to export and forced to close down, resulting in the unfair phenomenon that law-abiding people were eliminated and law-breakers continued to survive.

FX 168 Financial Network-Chinese financial information website from a global perspective-professional foreign exchange gold information network.