Analysis on the Effects of the Appreciation of RMB on Chinese Economy

In recent years, the problem of exchange rate of RMB has been the focus of disputes, the view that the appreciation of RMB will damage the development of economy is only analyzed from aspects of imports, exports and FDI. However, adjusting exchange rate will affect various fields. This paper expatiates on effects that appreciation of RMB effect on imports and exports trade, FDI, foreign exchange reserve, the structure of economy, employment and so on in system, and the conclusion is that although it has disadvantages and merits, the appreciation of RMB have more merits than disadvantages, then bring forward idiographic advice on range, mode and occasion of appreciation.