CNY Appreciation: the influence on China.
China has adjusted her monetary policy on pegging to USD only since China joined the WTO.She bought out a package of monetary policy,establishing of the CNY exchange rate formation mechanism based on the market demand. These years along with the CNY appreciation,it influence China a lot . China is a import and export trade power,import and export trarde origin of GDP 21%,thus the CNY Appreciation has the biggest influence on china.China's major export industries of textiles, clothing, chemicals, electronics and machinery manufacturing. There are differences due to the export price elasticity of different appreciation of the renminbi to the adverse effects of different industries export .The profits of Chinese Industries will go down rapidly.As a whole, as china export industries is mainly on the processing trade, the raw material of import proportion is very high.so CNY appreciation makes the final product price competitiveness weakened, but be able to buy more raw materials and intermediate products is limited, so the impact of CNY appreciation on export competitiveness. The impact of CNY appreciation on China's trade to effectively regulate the development of China's industrial structure, the appreciation of the CNY ,the imports of the international prices of raw materials to reduce the effective development to the expansion of domestic demand-oriented economic strategy of sustainable development at the same time, due to appreciation of the yuan, to reduce China's export competitiveness of their products processing-based, labor-intensive economy is mainly dependent on cheap power is undoubtedly a challenge.CNY appreciation can reduce china trade surplus, improving China's international balance of payments imbalance