What is the impact of RMB appreciation on China s economy?

Each has its own sayings: 1. On the good side: improve China's economic status, increase the purchasing power of ordinary people for foreign products, promote the upgrading of Chinese enterprises, improve their competitiveness, and alleviate inflationary pressure.

2. The bad side: it reduces the income of China's huge foreign exchange, reduces the foreign exchange purchasing power of the super-rich (China), reduces the control of the domestic vested profit group over China's economy, and increases the contradictions at the upper level.

1. Theoretically, the disadvantages of RMB appreciation.

1. The appreciation of the renminbi will cause the import of goods to decline and the export to rise, thereby importing, inhibiting exports, reducing the international surplus and even running a deficit, resulting in the difficulties of some enterprises and the reduction of employment, especially the increase in the import of some agricultural products, affecting the income of farmers.

2. The appreciation of the renminbi will increase the cost of foreign direct investment and have a certain adverse impact on foreign direct investment, thereby restricting the increase of foreign direct investment.

3. After the appreciation of the RMB, the cost of foreign tourism in China will rise, and the number of foreign tourists may decrease, which will have an adverse impact on the tourism industry.

4. The depreciation of the country's foreign exchange reserves is caused by the appreciation of the RMB.

5. After the appreciation of the renminbi, the country's contribution to the United Nations will increase accordingly.

2. The theoretical benefits of RMB appreciation.

1. The appreciation of RMB is conducive to the investment of domestic capital overseas, breaking the technological blockade of developed countries, indirectly introducing foreign advanced technology, and promoting the technological progress of domestic enterprises.

2. The appreciation of the renminbi is conducive to the establishment of domestic commodity sales networks by domestic enterprises in developed countries with relatively depreciated currencies, as well as to reduce the cost of advertising and publicity in these countries, combine import and export with overseas investment, and improve the comprehensive economic benefits of China's export enterprises.

3. The appreciation of RMB reduces the value of imported raw materials, which is conducive to improving the international competitiveness of "three to one supplement" enterprises.

4. The appreciation of the renminbi will reduce the repayment cost of foreign loans and improve the efficiency of enterprises using foreign loans.

5. The appreciation of RMB will reduce the cost of imported advanced machinery and equipment and improve the investment efficiency of domestic enterprises.

6. The appreciation of RMB will reduce the cost of imported oil and make China's oil industry gain huge benefits.

7. The appreciation of RMB will improve the profitability of most export enterprises, which is conducive to the technological transformation and product upgrading of China's export enterprises, and enhance their own competitiveness and sustainable development ability.

8. After the appreciation of the renminbi, the state pays a relative decrease in the renminbi for the purchase of foreign exchange, which reduces the amount of money and is conducive to preventing inflation.

9. The appreciation of the renminbi has increased the international purchasing power of domestic consumers, and overseas travel will increase, and the standard of living will improve.

10. The appreciation of the renminbi has improved the self-confidence of domestic consumers and is conducive to promoting consumption upgrading.

If the renminbi continues to depreciate, the consequences for China's economy:

1. The export of China's economy is very beneficial. Export commodities have become more competitive internationally.

2. Many enterprises that rely on imports of raw materials have brought disaster, increased costs and reduced profits.

3. On the whole, there are no serious consequences. Because China is both the largest exporter and the world's second-largest importer, the consequences of depreciation or appreciation are not serious.

It costs more money to import, and more money is earned from exports. If you rely on imports for oil, the price will rise.

1. Prices are rising.

2. Decline in purchasing power.

3. Decreased quality of life.

4. Exports can't earn foreign exchange.

In short, it is to live in the water and fire...

1. It is conducive to continuing to promote the reform of the exchange rate system and even the financial system.

2. It is conducive to solving the problem of imbalance in external affairs.

3. It is conducive to reducing the import of goods, and can also reduce the production cost of export enterprises based on imported raw materials.

4. It is conducive to promoting domestic enterprises to strive to improve the competitiveness of products.

Introduction: The appreciation of the RMB is relative to other currencies, that is, the purchasing power of the RMB increases. The reason for the renminbi's appreciation comes from internal dynamics in China's economic system and external pressures.

Internal influencing factors include the balance of payments, foreign exchange reserves, price and inflation, economic growth, and interest rates.

Negative impact: 1. It will have an impact on China's export enterprises, especially labor-intensive enterprises.

2. It is not conducive to China's introduction of overseas direct investment.

3. Increase the pressure on domestic employment.

4. Affect the stability of the financial market.

5. Huge foreign exchange reserves will face the threat of shrinking.