3 thoughts on “Is the appreciation of the RMB against the US dollar good or bad? What is based on ??”
Charlene
The appreciation of the renminbi is good for disadvantages, and it cannot be simply said good or bad. First of all, the benefits of the appreciation of the renminbi are mainly four points. The following are: First, expand the demand for imported products in China, so that they can get more affordable. The most obvious change brought by the appreciation of RMB to domestic consumers is that the RMB is "more valuable". If you study abroad or travel abroad, you will spend less money than before; or, spend the same money, will be able to do more than before. If you buy imported cars or other imported products, you will find that their prices have become "cheap", so that ordinary people can get more benefits. Secondly, reduce the cost burden of imported energy and raw materials. my country is a country with scarce resources. Under the circumstances of the rise in international energy and raw materials, domestic companies are bound to bear more and more cost burdens. In 2004, the average price of refined oil imports in my country rose 30.8 % compared with 2003, steel rose 43.7 %, copper materials rose 50.4 %, and iron ore rose more than doubled. The rise in the price of imported energy and raw materials will not only raise the price of the entire basic production, but also devour the profits of the middle and lower reaches of the enterprise in the industrial chain, reduce their profitability or even lose money. If the RMB appreciates to a reasonable level, it can greatly reduce the burden of imported energy and raw materials in my country, thereby reducing domestic enterprises and enhancing competitiveness. The third is conducive to promoting the adjustment of my country's industrial structure and improving my country's status in international division of labor. For a long time, my country has relying on the number of cheap labor -intensive products to expand its export -oriented strategy, so that the export structure has not been optimized for a long time, so that my country has always played the role of "world migrant workers" in international division of labor. The appropriate appreciation of the renminbi is conducive to promoting exporting enterprises to improve its technical level, improve product grade, thereby promoting my country's industrial structure adjustment, and improving my country's status in international division of labor. It, it helps to alleviate the relationship between my country and major trading partners. In view of the rapid momentum of my country's export trade development and increasing trade surplus, my country's major trading partners have repeatedly demanded the appreciation of the RMB. In this regard, simply saying "no", it seems to be inspiring, but there is nothing to do. Because this will continuously deteriorate my country's relationship with them and set up obstacles to my country's foreign economic and trade development. In recent years, the sharp increase in China's anti -dumping case is a very convincing evidence. The appropriate appreciation of the renminbi will not only help alleviate the relationship between my country and major trading partners, reduce economic and trade disputes, but also establish a good international image of our country as a big country. The appreciation of the renminbi has also brought an unfavorable side to my country. There are five main points. The following are: , the first, it will have a impact on my country's exporting enterprises, especially labor -intensive enterprises. In the international market, the export price of Chinese products, especially labor -intensive products, is much lower than the prices of similar products in other countries. The reason is that one is that my country's labor force prices are low, and the other is due to fierce domestic competition, which makes export companies do not hesitate to use low -cost sales strategies. Once the RMB appreciates, in order to maintain the same bottom line of RMB, the prices of my country's export products expressed in foreign currencies will increase, which will weaken its price competitiveness. To keep the foreign currency price of export products unchanged, it is bound to squeeze export companies The profit space, this cannot be impact on export companies, especially labor -intensive enterprises, especially labor -intensive companies. The second is not conducive to the introduction of direct investment in overseas. my country is the country with the most direct investment in the world in the world. At present, foreign -funded enterprises have played an increasingly obvious role in various fields such as industry, agriculture, and service industry in my country. Economic development has an impact that cannot be ignored. After the appreciation of the renminbi, although it will not have a substantial impact on foreign companies invested in China, it will adversely affect the foreign business that is about to come to China, because this will increase their investment costs. In this case, they may turn investment to other developing countries. third, increase the pressure on domestic employment. The impact of RMB appreciation on export companies and direct investment abroad will eventually be reflected in employment. Because most of the export products in my country are labor -intensive products, the exports will inevitably increase the employment pressure [1]; foreign -funded enterprises are one of the most new employment positions. The slowdown of foreign capital growth will cause domestic employment to employment in China The situation is even more severe. The fourth, affecting the stability of the financial market. If the RMB appreciates, a large number of short -term overseas speculation funds will take the opportunity to enter the RMB exchange rate. Under the circumstances where the development of China's financial markets is still not sound, this can easily trigger the financial and currency crisis. In addition, the appreciation of the RMB will further increase the actual amount of the existing non -performing assets measured by US dollars, which is not conducive to the reform of the entire banking industry and the adjustment of liabilities. Fifth, huge foreign exchange reserves will face a threat of shrinking. At present, China's foreign exchange reserves are as high as US $ 2454.3 billion, ranking first in the world. Successful foreign exchange reserves are an important sign of my country's economic strength and increasing levels of opening up. It is also a powerful guarantee for our promotion of domestic economic development and participating in foreign economic activities. However, once the RMB appreciates, huge foreign exchange reserves are facing a threat of shrinking. If the RMB against the US dollar can be redeemed by 10 %, the foreign exchange reserves in my country will shrink by 10 %. This is a severe issue we have to face. The reasons for three points: First, the RMB exchange rate is too low. Some people have proposed that the RMB exchange rate should be determined at a level of about $ 1.2 yuan. Second, China's foreign exchange reserves have been too high. Since the entry of China, imports have not surged, and the trade surplus has increased significantly. Third, the export of low -cost products in China has caused world currency tightening. Some people believe that in recent years, a large number of low -cost products in China have led to austerity in Japan and Europe and the United States. China should appreciate the renminbi and take the corresponding responsibility in the world economy.
The appreciation of the RMB against the US dollar is conducive to it: is conducive to importing the United States products, which is conducive to consumption such as traveling to the United States and studying abroad n not conducive to the export of products in my country
The reason for appreciation: It economics, there may be the following basis for the following aspects:
The first, the RMB exchange rate has not been adjusted since 1994, and this Ten years of China's economy and national strength have undergone profound changes.
. Since the 1990s, some authoritative international institutions and trading partners have always believed that the value of the renminbi has a different degree of value.
Third, according to the theory of international economics, too much foreign exchange festival itself indicates that the foreign currency pricing is too high, the price of the local currency is too low, and the local currency has the pressure to appreciate.
. Since 2001, major currencies in the world, including Southeast Asian countries, have appreciated significantly. Only the exchange rate of the RMB to the US dollar has not been adjusted. Other currencies have depreciated sharply. Not to mention whether the renminbi has been excessively depreciated or pricing in the 1990s. In recent years, the currency of other countries has appreciated a significant value to the US dollar in recent years. Only the exchange rate of the RMB against the US dollar has not moved. Value may underestimate.
If international political analysis
The RMB exchange rate problem is not only economic issues, but also international political issues. Some scholars have specifically pointed out that some Western countries have frequently called for RMB to appreciate, and there are other reasons behind it. Some are jealousy, some are to divert domestic accusations on the authorities, and some are to fight for votes in the domestic manufacturing industry. For example, Western countries simply associate the RMB value level with the recession of its domestic manufacturing industry, trying to force the yuan to appreciate. The factors that caused the reduction of American employment opportunities are not China, but the invisible hands of global competition. The reason why foreign abroad is booming for RMB appreciation is nothing more than the following: First, the RMB exchange rate is too low. Some people have proposed that the RMB exchange rate should be determined at a level of about $ 1.2 yuan. Second, China's foreign exchange reserves have been too high. Since the entry of China, imports have not surged, and the trade surplus has increased significantly. Third, the export of low -cost products in China has caused world currency tightening. Some people believe that in recent years, a large number of low -cost products in China have led to austerity in Japan and Europe and the United States. China should appreciate the renminbi and take the corresponding responsibility in the world economy.
The appreciation of the renminbi is good for disadvantages, and it cannot be simply said good or bad. First of all, the benefits of the appreciation of the renminbi are mainly four points. The following are:
First, expand the demand for imported products in China, so that they can get more affordable. The most obvious change brought by the appreciation of RMB to domestic consumers is that the RMB is "more valuable". If you study abroad or travel abroad, you will spend less money than before; or, spend the same money, will be able to do more than before. If you buy imported cars or other imported products, you will find that their prices have become "cheap", so that ordinary people can get more benefits.
Secondly, reduce the cost burden of imported energy and raw materials. my country is a country with scarce resources. Under the circumstances of the rise in international energy and raw materials, domestic companies are bound to bear more and more cost burdens. In 2004, the average price of refined oil imports in my country rose 30.8 % compared with 2003, steel rose 43.7 %, copper materials rose 50.4 %, and iron ore rose more than doubled. The rise in the price of imported energy and raw materials will not only raise the price of the entire basic production, but also devour the profits of the middle and lower reaches of the enterprise in the industrial chain, reduce their profitability or even lose money. If the RMB appreciates to a reasonable level, it can greatly reduce the burden of imported energy and raw materials in my country, thereby reducing domestic enterprises and enhancing competitiveness.
The third is conducive to promoting the adjustment of my country's industrial structure and improving my country's status in international division of labor. For a long time, my country has relying on the number of cheap labor -intensive products to expand its export -oriented strategy, so that the export structure has not been optimized for a long time, so that my country has always played the role of "world migrant workers" in international division of labor. The appropriate appreciation of the renminbi is conducive to promoting exporting enterprises to improve its technical level, improve product grade, thereby promoting my country's industrial structure adjustment, and improving my country's status in international division of labor.
It, it helps to alleviate the relationship between my country and major trading partners. In view of the rapid momentum of my country's export trade development and increasing trade surplus, my country's major trading partners have repeatedly demanded the appreciation of the RMB. In this regard, simply saying "no", it seems to be inspiring, but there is nothing to do. Because this will continuously deteriorate my country's relationship with them and set up obstacles to my country's foreign economic and trade development. In recent years, the sharp increase in China's anti -dumping case is a very convincing evidence. The appropriate appreciation of the renminbi will not only help alleviate the relationship between my country and major trading partners, reduce economic and trade disputes, but also establish a good international image of our country as a big country.
The appreciation of the renminbi has also brought an unfavorable side to my country. There are five main points. The following are:
, the first, it will have a impact on my country's exporting enterprises, especially labor -intensive enterprises. In the international market, the export price of Chinese products, especially labor -intensive products, is much lower than the prices of similar products in other countries. The reason is that one is that my country's labor force prices are low, and the other is due to fierce domestic competition, which makes export companies do not hesitate to use low -cost sales strategies. Once the RMB appreciates, in order to maintain the same bottom line of RMB, the prices of my country's export products expressed in foreign currencies will increase, which will weaken its price competitiveness. To keep the foreign currency price of export products unchanged, it is bound to squeeze export companies The profit space, this cannot be impact on export companies, especially labor -intensive enterprises, especially labor -intensive companies.
The second is not conducive to the introduction of direct investment in overseas. my country is the country with the most direct investment in the world in the world. At present, foreign -funded enterprises have played an increasingly obvious role in various fields such as industry, agriculture, and service industry in my country. Economic development has an impact that cannot be ignored. After the appreciation of the renminbi, although it will not have a substantial impact on foreign companies invested in China, it will adversely affect the foreign business that is about to come to China, because this will increase their investment costs. In this case, they may turn investment to other developing countries.
third, increase the pressure on domestic employment. The impact of RMB appreciation on export companies and direct investment abroad will eventually be reflected in employment. Because most of the export products in my country are labor -intensive products, the exports will inevitably increase the employment pressure [1]; foreign -funded enterprises are one of the most new employment positions. The slowdown of foreign capital growth will cause domestic employment to employment in China The situation is even more severe.
The fourth, affecting the stability of the financial market. If the RMB appreciates, a large number of short -term overseas speculation funds will take the opportunity to enter the RMB exchange rate. Under the circumstances where the development of China's financial markets is still not sound, this can easily trigger the financial and currency crisis. In addition, the appreciation of the RMB will further increase the actual amount of the existing non -performing assets measured by US dollars, which is not conducive to the reform of the entire banking industry and the adjustment of liabilities.
Fifth, huge foreign exchange reserves will face a threat of shrinking. At present, China's foreign exchange reserves are as high as US $ 2454.3 billion, ranking first in the world. Successful foreign exchange reserves are an important sign of my country's economic strength and increasing levels of opening up. It is also a powerful guarantee for our promotion of domestic economic development and participating in foreign economic activities. However, once the RMB appreciates, huge foreign exchange reserves are facing a threat of shrinking. If the RMB against the US dollar can be redeemed by 10 %, the foreign exchange reserves in my country will shrink by 10 %. This is a severe issue we have to face.
The reasons for three points: First, the RMB exchange rate is too low. Some people have proposed that the RMB exchange rate should be determined at a level of about $ 1.2 yuan. Second, China's foreign exchange reserves have been too high. Since the entry of China, imports have not surged, and the trade surplus has increased significantly. Third, the export of low -cost products in China has caused world currency tightening. Some people believe that in recent years, a large number of low -cost products in China have led to austerity in Japan and Europe and the United States. China should appreciate the renminbi and take the corresponding responsibility in the world economy.
The appreciation of the RMB against the US dollar is conducive to it:
is conducive to importing the United States products, which is conducive to consumption such as traveling to the United States and studying abroad n not conducive to the export of products in my country
The reason for appreciation:
It economics, there may be the following basis for the following aspects:
The first, the RMB exchange rate has not been adjusted since 1994, and this Ten years of China's economy and national strength have undergone profound changes.
. Since the 1990s, some authoritative international institutions and trading partners have always believed that the value of the renminbi has a different degree of value.
Third, according to the theory of international economics, too much foreign exchange festival itself indicates that the foreign currency pricing is too high, the price of the local currency is too low, and the local currency has the pressure to appreciate.
. Since 2001, major currencies in the world, including Southeast Asian countries, have appreciated significantly. Only the exchange rate of the RMB to the US dollar has not been adjusted. Other currencies have depreciated sharply. Not to mention whether the renminbi has been excessively depreciated or pricing in the 1990s. In recent years, the currency of other countries has appreciated a significant value to the US dollar in recent years. Only the exchange rate of the RMB against the US dollar has not moved. Value may underestimate.
If international political analysis
The RMB exchange rate problem is not only economic issues, but also international political issues. Some scholars have specifically pointed out that some Western countries have frequently called for RMB to appreciate, and there are other reasons behind it. Some are jealousy, some are to divert domestic accusations on the authorities, and some are to fight for votes in the domestic manufacturing industry. For example, Western countries simply associate the RMB value level with the recession of its domestic manufacturing industry, trying to force the yuan to appreciate. The factors that caused the reduction of American employment opportunities are not China, but the invisible hands of global competition. The reason why foreign abroad is booming for RMB appreciation is nothing more than the following: First, the RMB exchange rate is too low. Some people have proposed that the RMB exchange rate should be determined at a level of about $ 1.2 yuan. Second, China's foreign exchange reserves have been too high. Since the entry of China, imports have not surged, and the trade surplus has increased significantly. Third, the export of low -cost products in China has caused world currency tightening. Some people believe that in recent years, a large number of low -cost products in China have led to austerity in Japan and Europe and the United States. China should appreciate the renminbi and take the corresponding responsibility in the world economy.