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
|southeast Asia finance|
The financial crisis happened on the June ,new york giants
1997 in Asia has a lot of complexes and influences, which can set into three parts :June-July/1997,Jan.---July/1998 and the end of July /1998
The first stage: Thailand is out of expections to announce that she would use floating exchange rate instead of the fixed exchange rate..It is this event that gave rise to Asia financial crisis .on that day, the Tai baht against US dollars exchange rate went down to 17%,and disorder in the foreign exchange rate. with the influence of the Tai baht, the international exchange arbitrage begin to attack the Philippins ,Indonesia and Malaysia . Later , gradually it became financial crisis .new york giants
The second stage: On Jan,1998,Indonesia come up with another financial crisis Facing with the worst economic reccesion ,the solutions given by IMF for Indonesia made no effect. Indonesian government declared the she will implement linked exchange rate system ,which made many countries against for it .
The third stage : Hong Kong exchange rate market is under attack again . Hang Seng index went down to 6000.. Hong Kong government took measures to prevent this .however the financial crisis spread to Russia It demonstrated that the Asia financial crisis is not regional but global.
|new england patriots|
90's can be regarded as the financial globalization era .Despite that china survived from the financial crisis ,but she can learned lessons.
|new england patriots|
1,Alert to the occurrence of the bubble economy, the timely processing of bad debt problem
2.Adhere to the principle of full liberalization of the financial
3.Accelerate the pace of adjustment of industrial results