A small appreciation of the renminbi will curb exports and increase imports. Because after the appreciation of RMB, the cost of China's export enterprises will increase accordingly, which will weaken the international competitiveness of export products and is not conducive to the continuous expansion of exports, thus reducing the price competitiveness of a large number of domestic labor-intensive export products in the international market and hurting China's foreign trade exports. Because the appreciation of RMB directly inhibits or attacks exports, it will lead to the rise of non-tradable goods (such as land, labor and other production factors), thus weakening domestic demand, and then bringing serious negative effects to the job market. On the other hand, the appreciation of RMB will also lead to an increase in imports, which may lead to a trade deficit and affect the competitiveness of domestic enterprises.

(2) A small appreciation of RMB is not conducive to introducing foreign capital and accelerating capital outflow. The appreciation of RMB exchange rate will lead to a decline in attracting foreign investment, reducing foreign direct investment in China and accelerating capital outflow.

(3) A small appreciation of RMB will affect the effectiveness of monetary policy and the stability of financial market. The foreign exchange rate of each country is basically stable under normal circumstances, but once it encounters the pressure of appreciation, it will force the central bank to buy a lot of foreign exchange in the foreign exchange market, thus increasing the base currency in the form of foreign exchange, resulting in inefficient use of funds and affecting the effectiveness of monetary policy. Due to the appreciation of RMB exchange rate, the fiscal deficit will increase. At the same time, it affects the stability of monetary policy. In addition, the appreciation of RMB will affect the stability of financial market, especially for countries with relatively backward financial market development. A large amount of short-term capital flows into the capital market through various channels for profit-seeking behavior. It is easy to trigger currency and financial crises, which will adversely affect the sustained and healthy development of the economy. For China, which relies on foreign capital to achieve prosperity, its possible impact cannot be ignored.

(4) The impact of RMB appreciation on the stock market. Theoretically, the change of exchange rate is closely related to stock price. Generally speaking, if a country's currency is the basic policy of appreciation, the stock price will rise, and once the currency depreciates, the stock price will fall. Therefore, the change of exchange rate will have an impact on the stock market.

To sum up, in the next few years, the pressure of RMB appreciation will be greater and greater, and it is an inevitable trend for RMB to continue to appreciate. 2% appreciation is more of a signal and gesture, and it is the beginning of the expectation of RMB appreciation. China government should unswervingly maintain the basic stability of the exchange rate, take active measures to adjust the relationship between supply and demand of RMB, release the pressure of appreciation, speed up the reform of the exchange rate system, and formulate and implement operable countermeasures.