Benefits: 1 Enhance the purchasing power of China. When we buy foreign goods, it is equivalent to selling them to us at a 20% discount. Similarly, it will be cheaper and more convenient for our country to invest or buy foreign assets abroad than before. 3. The appreciation of RMB will cause people in the economic circles to think that RMB will appreciate again, which will lead to a large amount of funds entering China, enough to offset the decrease in investment brought by the increase in investment cost, and will greatly exceed. 4. Because the advantage of low labor cost is offset by the appreciation of RMB, the appreciation of RMB can also promote the transformation of China's industrial structure from labor-intensive to high added value. The appreciation of RMB can lay the foundation for RMB to go global, and the appreciation of RMB will bring confidence to people all over the world, so it is natural for RMB to become an international currency. 6. Social welfare is directly improved, because the purchasing power of RMB increases, and prices in all aspects will decrease accordingly. 7. It is beneficial from the short-term effect. After all, under the same monetary value, ordinary people can buy more things. But in the long run, it is not conducive to the economic development of China. The most obvious manifestation is the import and export trade mentioned above. Disadvantages: 1 The country's foreign exchange reserves will decrease with the appreciation. 2. The export products of this country will be affected by the appreciation of RMB, that is, because of the appreciation of RMB, the cost of export will increase compared with foreign importers, and the quantity of export will decrease. However, due to the low cost of commodity labor in China, the appreciation of RMB by 20-30% will not have much impact on China's commodity competitiveness. It can be said that the export volume reduced by appreciation (not necessarily) will be filled by the foreign exchange volume recovered by appreciation, and the foreign trade situation of China will not change much. 3. It will affect China's labor export to a certain extent and foreign investment to a small extent (the same investment will increase the investment cost due to the appreciation of RMB). 4. The appreciation of RMB will enhance the purchasing power of RMB, which will lead to an increase in imports and reduce China's trade deficit. This is just what we need. The rising bad debts of banks bring unemployment, the decline of FDI (foreign direct investment), rural deflation, the weakening of RMB's external role, and the difficulty in realizing China's commitment to WTO, which in turn leads to financial instability in Southeast Asia and economic slowdown in Asia. 6 RMB appreciation will curb China's exports. China's main export target is the United States. In recent years, the United States has experienced a trade deficit. Appreciation will slow down this process. Relatively speaking, the rising value of China's currency will stimulate foreign imports to China. In the long run, RMB appreciation will do more harm than good.