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Analysis of the pros and cons of the appreciation of the renminbi

The pros and cons of RMB appreciation are as follows:

Positive impacts:

1, favorable to China's imports.

2, the cost of raw material import-dependent manufacturers fell.

3, domestic enterprises to enhance the ability of foreign investment.

4, foreign-invested enterprises in China increased profitability.

5. Favorable for talents to study and train abroad.

6. Reduced pressure on debt servicing.

7, China's assets sold more cost-effective.

8, China's GDP international status.

9, increase in national tax revenue.

1, Chinese people's international purchasing power increased.

Negative effects:

1, the yuan is not freely convertible under the capital account, that is to say, the mechanism that determines the exchange rate is not the market, and it makes no sense to change.

2, the appreciation of the yuan will bring more pressure on China's deflation.

3, the appreciation of the yuan exchange rate will lead to a decline in the attractiveness of foreign investment, reducing foreign direct investment in China.

4, to China's foreign exports caused great harm.

5, the appreciation of the yuan exchange rate will reduce the profitability of Chinese enterprises, increasing employment pressure.

6, the fiscal deficit will increase due to the appreciation of the RMB exchange rate, while affecting the stability of monetary policy.