2. The cost of manufacturers who depend on the import of raw materials has been reduced.
3. The ability of domestic enterprises to invest abroad has been enhanced.
4. The profits of foreign-invested enterprises in China increased.
5. It is beneficial for talents to study and train abroad.
6. Relieve the pressure of debt repayment.
7. It is more cost-effective to sell assets in China.
8. The international status of China's GDP has improved.
9, increase the national tax revenue
10, the negative impact of China people's increasing international purchasing power 1, the RMB is not freely convertible under capital account, which means that the mechanism for determining the exchange rate is not the market, and the change is meaningless.
2. The appreciation of RMB will bring greater deflationary pressure to China.
3. The appreciation of RMB exchange rate will lead to a decline in attracting foreign investment and reduce foreign direct investment in China;
This has done great harm to China's foreign trade export.
5. The appreciation of RMB exchange rate will reduce the profit rate of China enterprises and increase the employment pressure.
6. The fiscal deficit will increase due to the appreciation of RMB exchange rate, which will also affect the stability of monetary policy.
The appreciation of RMB will do more harm than good to the sustained development of China's economy, but it will also do no good to the improvement of Japanese and American economies, and will do more harm than good to the recovery and steady growth of Asian economies. Therefore, the RMB should not appreciate at present, let alone greatly.
There has been a lot of discussion about the appreciation of RMB in the world. In particular, Japan, the United States and other countries urged China to adjust its currency exchange rate to make the RMB appreciate. Many people in the European media also believe that the EU's trade deficit with China is US$ 20 billion, and only the appreciation of RMB can improve the trade deficit.
What are the advantages and disadvantages of RMB appreciation? Why do these developed countries want RMB to appreciate? Why are Asian developing countries basically silent about China's currency exchange rate? The appreciation of RMB does more harm than good to the sustainable development of China's economy, and it is also not conducive to the improvement of Japanese and American economies, and does more harm than good to the recovery and steady growth of Asian economies.
This is not conducive to the sustainable development of China's economy.
Potential benefits of RMB appreciation: it is beneficial to repay foreign debts, to import trade, to curb inflation, to China's overseas investment, and to RMB's progress towards regional and international currencies.
The appreciation of RMB is more harmful to China's economy.
First, weaken the competitiveness of China's goods in the international market. China's goods enter the world market with "low price and good quality", and the appreciation of RMB will inevitably affect the export of China's products and their competitiveness in the international market.
Second, the number of foreign enterprises investing in China will decrease. China's development experience has proved that the lack of foreign investment, or the sudden decrease of foreign investment, is very unfavorable to the sustainable development of China. Although the appreciation of RMB is beneficial to foreign entrepreneurs who have invested or have capital in China, their assets will increase in value, which will deter entrepreneurs who are about to invest in China. Therefore, in the long run, this will be detrimental to the economic development of China.
Third, it is not conducive to the development of domestic tourism in China. Once the RMB greatly appreciates, it will play a negative role in the development of domestic tourism in China. Of course, the appreciation of RMB will also promote China people to travel abroad, but the resulting foreign exchange losses will also be detrimental to China.
Fourthly, China's huge foreign exchange reserves will be greatly reduced. China's foreign exchange reserves reached US$ 403.3 billion (at the end of 2003), ranking second in the world, second only to Japanese. China's foreign exchange reserves are mainly US dollars. As long as the renminbi appreciates, a large amount of dollar reserves will shrink.
Fifth, China's economy may get out of control. Maintaining the stability of currency exchange rate is very important for the sustainable development of a country's economy. China's financial and monetary systems are still far from perfect. Once the currency exchange rate is greatly adjusted, it is very likely to get out of control.