《人民幣升值對(duì)中國(guó)出口型企業(yè)的影響及對(duì)策》中英文

1、The Impact and Countermeasures of RMB Appreciationon Export-Based Enterprises in ChinaMin YuanSchool of Economics, Tianjin Polytechnic UniversityTianjin 300387, ChinaE-mail: wuna0915.studentZhuang ZhouSchool of Economics, Tianjin Polytechnic UniversityTianjin 300387, ChinaE-mail: zhouzhuangAbstractR

2、MB appreciation will pose a challenge to export-based enterprises in China, and bring a sense of crisis to them.Therefore, Chinas export enterprises should take active measures to deal with the impact caused by the RMBappreciation, so that export-oriented enterprises can better adapt to the changes

3、in the global economy, thusmaterializing their sustainable and stable development.Keywords: RMB appreciation, Export-based industries, Pros and cons, CountermeasuresThe appreciation of the RMB has become much-discussed focus in the international economy and society. China hasbegun to implement the m

4、anaged floating exchange rate system based on market supply and demand, with reference toa basket of currencies. RMB exchange rate is no longer pegged only to the U.S. dollar, and instead China hasformulated a more flexible RMB exchange rate mechanism. RMB appreciation will pose a challenge to expor

5、t-basedenterprises in China, and bring a sense of crisis to them. Therefore, Chinas export enterprises should take activemeasures to deal with the impact caused by the rising Yuan, so that export-oriented enterprises can better adapt to thechanges in the global economy, thus materializing their sust

6、ainable and stable development.In June, 2008, the exchange rate of RMB against the U.S. dollar exceeded the 7:1 boundary. The trend of a Yuans riseis foreseeable, and in the irreversible environment, we must take appropriate steps to prevent large fluctuations in RMBto mitigate its negative impact o

7、n the import and export trade, while at the same time making full use of the small rise inyuan to promote trade development. Yuans rise is not only conducive to a decrease in import costs and domesticinflation, stimulation to consumption, acceleration of structural adjustment, promotion of foreign i

8、nvestment and thereduction in trade friction, but in the short term will also have a negative impact on exports, influencing foreigninvestment and employment.1. Major industries damaged by and benefiting from Yuans riseThe impact of a Yuans rise on various kinds of sectors varies according to the di

9、fferent characteristics of industries.RMB appreciation brings advantages to the industries that need to import raw materials, but is not favorable to ones thatare export-oriented. It also brings opportunities to the upgrade and optimization of these industries, though certainindustries will be adver

10、sely affected by it.The main industries benefiting from Yuans rise are as follows: (1) real estate and infrastructure ones, which belong tothe non-real estate industry, with its domestic real estate value comprehensively enhanced by a rise in Yuan; (2) onessuch infrastructure industries as airports,

11、 ports, railways, and highways characterized by limited resources, monopoly,the long construction period, and small supply elasticity; (3) the financial sector, especially banking and securities,which is among capital-intensive industries dealing with currencies and capital. Because of good liquidit

12、y, it iscategorized into the industry with a high value of RMB assets, benefiting from attracting a large amount ofinternational capital; (4) ones such as aviation, electricity, oil refining, paper-making, engineering machinery, and so on,which will see a reduction in costs owning to its main depend

13、ence on procurement of foreign raw materials orequipments, or because of the benefits resulted from large amounts of external debt service and the exchange gains andlosses, in particular the aviation industry with the dominance of the domestic market; (5) high-tech ones relying uponimporting technol

14、ogy, which dont have any advantage in intellectual property rights related to key sciences andtechnologies, will also maintain the momentum of a large amount of imports in a certain period of time, and are able tokeep up their advantage in costs under the premise of a rise in Yuan.Major industries d

15、amaged by Yuans rise are as follows: (1) as for export-oriented ones, such as the textile industry(especially garment industry with the high degree of dependence on exports more damage, followed by the cottonspinning industry and wool industry), household appliances, building materials, whose produc

16、t competitiveness will beweakened to a large extent; (2) foreign trade enterprises have a disadvantageous position in the industry chain, and theirimport business will be unable to gain excess profits from the appreciation of the RMB, with the export businesssuffering a lot; (3) mining, petrochemica

17、l, and non-ferrous metal industries, which will be given a big blow by theirexport business; (4) agriculture with a larger proportion of exports.2. The impact of RMB appreciation on Chinas export enterprises2.1 Adverse effects on Chinas export enterprises2.1.1 The export of manufactured goods is gre

18、atly affected by fluctuations in exchange rate on a wide basisRMB appreciation will induce a increase in currency exchange cost in Chinese export firms, resulting in the loss ofprice advantage. The cost refers to the RMB cost paid domestically on the net revenue from one dollarworth of exports.China

19、s manufacturing exports are more concentrated on low-end products, with competitive advantage weak. Theseproducts compete with other ones mainly by means of prizing, and as a result the Yuans rise will have a retardingeffect on their exports. For employees in the manufacturing sector, those that are

20、 seriously affected may face thereduced income, or even the risk of unemployment. The adverse impact of enterprises in labor-intensive industries willbe greater than ones in capital-intensive industries.2.1.2 Causing a slow growth in the export of most of products related to raw materialsThe majorit

21、y of products related to raw materials dont have any competitive edge in the export price, with a strongerreliance on the exchange rate, such as paper, cotton yarn, black metal (steel, manganese, etc.), aluminum,wood andother decorations. RMB appreciation will induce a slow growth in exports of thes

22、e primary products and raw materialproducts, having a negative impact on economic growth in the short run. It will also reduce the exports of crude oil,refined oil, timber, copper, gold and other resource-based commodities, and bring about the loss of the enterprises,worse still such cascade effects

23、 as increased unemployment and banking bad debts. Because our resources are not rich,these resource-based products belong to highly energy-consuming and polluting industries. Over-exports ofresource-based products make it easy to intensify the tense contradiction between domestic coal, electricity a

24、nd oiltransportation in the short term. In the long term, it will increase the pressure of the domestic environment and resources,which is not conducive to the sustainable development of the domestic economy.2.1.3 The psychological effect of trade impact on peopleIn the international market, the inc

25、rease in production costs will be passed on to the price, and consequently theexchange rate appreciation will not affect the profits of these enterprises too much. Chinas export products cause theprice fluctuations in foreign countries due to our currency appreciation, and the appreciation of the RM

26、B will increasethe domestic production costs of these enterprises, and in the international market these enterprises have a substantialcost advantage, with the minimal impact on the interests of traders. However, those with ulterior motives will instigate anegative psychological effect on China in t

27、he international community. People will believe the prices of products fromChina are higher, and foreign businessmen also believe that they will not made a lot of money from products importedfrom China, which causes the really adverse impact on Chinas exports.2.2 Beneficial effects on Chinas export

28、enterprises2.2.1 Enhancing the independent innovation capacity of enterprisesAt present, China is at a stage of technology overtaking, and enterprises have a strong capacity of technologyintroduction, digestion and absorption. And the Yuans rise can reduce the cost of independent development, indire

29、ctlypromote the technological upgrading of firms and enhance their core competitiveness, thus speeding up the pace ofoptimizing and upgrading the industrial structure and boosting the structure adjustment of exports.2.2.2 Optimizing the structure of introduced foreign capitalRMB appreciation makes i

30、mprove the treatment of workers, which is beneficial to attracting high-tech talents. Underthe prerequisite of the countrys independent innovation and technological progress, foreign capital will invest in thoseindustries with a high technological content, thereby promoting industrial structure upgr

31、ading and optimizing thestructure of exports.2.2.3 Promoting Chinas enterprise investment overseasFor enterprises to invest directly in foreign nations, they must use the currency of investment destination country. TheRMB appreciation significantly reduces their overseas investment costs, and meanwh

32、ile enhances the firmsinternational purchasing power and capacity of foreign investment, paving the way for a part of powerful enterprises toimplement going out strategy.2.2.4 Facilitating the development in service and trade industriesRMB appreciation can most effectively crowd out those firms in t

33、he manufacturing sector with low technology contentand added value, poor management and low efficiency, to the benefit of changing the situation of excessive resourcesgathering to export industries (mainly the secondary industry), and thus make industrial structureservice-industry-oriented, promotin

34、g the optimization and upgrading of industrial structure and facilitating the rapiddevelopment of service industries including trade services. This way, the coordinated development can be ultimatelyrealized between service and commodity trade, enhancing the countrys overall competitiveness.2.2.5 Boo

35、sting Chinas imports of raw materials and technologyThe prices of foreign consumer goods and capital goods are lower than ever before, and manufacturers dependent onimporting raw materials witness a decline in costs, such as steel, electrolytic aluminum, gasoline, oil and otherconsumption goods more

36、 and more dependent on imports. Chinas industrialization need to purchase a large number ofadvanced foreign technology; the appreciation of the RMB can reduce the purchase cost of foreign technology. Asimports increase, the purchasing power of foreign raw materials increase, with exports declining,

37、so it is helpful to easethe current trade surplus, enhance the balance of Chinas international balance of payments and weaken the formation ofthe RMB foreign exchange accounting, and improve the independence and initiative of monetary policy and the balanceof money supply.2.2.6 Reducing pressure fro

38、m external debt servicingThe appreciation of the RMB is advantageous to repaying foreign debts, and there is a corresponding reduction in theamount of outstanding external debt servicing.2.2.7 Strengthening the international purchasing power of common people in our countryAs the exchange rate rises,

39、 the prices of foreign consumer goods purchased by ordinary people will fall, promoting theimport of consumer goods. At the same time the drop in the cost of travel abroad can promote the growth of nationalconsumption.3. Counter-measures by Chinas export firms after RMB appreciationIn theory, the ri

40、sing RMB exchange rate is bound to have a negative effect on Chinas export enterprises, but accordingto the actual trade volume, it s still uncertain whether the rise in the RMB exchange rate lead to such results, which canbe verified by the fact that Chinas foreign trade volume continues to maintai

41、n a favorable balance. However, exportenterprises should response in a positive manner under the premise of the growing appreciation of the RMB.3.1 Avoiding exchange rate risk is an expedient measure for export enterprises to grapple with the appreciation of theRMB in the short runFaced with the ste

42、adily rising RMB exchange rate, export enterprises must take precautions, apart from enhancing itsanti-risk capacity. In addition, financial instruments developed by banks and other financial institutions must also berelied on to be hedged against risks and prepare more “l(fā)ife buoy”, so as to achieve

43、 the purposes of avoiding risks andimproving operational efficiency.3.1.1 Focus on the RMB exchange rate changes, and increase exchange rate risk awarenessConcern about the RMB exchange rate changes is one of long-term management tasks in export businesses, with greatimportance attached to this. Spe

44、cial force must be organized to learn exchange rate management knowledge and closelytrack the movement of the RMB exchange rate changes, in particular the movements in the recent exchange rate ofRMB against the U.S. dollar, euro, Japanese Yen, and other major currencies. Firms have to conduct an in-

45、depth studyof the impact of RMB appreciation on export products, and strive to improve the relevance and effectiveness of work.Export enterprises should enhance the risk awareness of exchange rate changes, take control of the effective means ofexchange rate risk, and continuously boost their capacit

46、y to deal with exchange rate risk. For instance, when signingexport contracts, firms can add some relevant provisions of avoiding exchange rate risk to prevent unexpectedsituations.3.1.2 Flexibly use various financial tools to lock and avoid exchange rate risksFlexible and effective financial instru

47、ments should be adopted, such as the use of multi-currency clearing method totransfer exchange rate risk, appropriate use of foreign exchange forward trading, hedging and other means to lock theexchange rate risk. Through the appropriate U.S. dollar loans, interest payments and the losses can be red

48、uced. Inaddition, under the conditional premise, this method can be used to keep the exchange rate risk within the businesssource through long-term foreign exchange transactions, options transactions and foreign exchange futures trading.3.1.3 Accelerate the realization of exports, and reduce the occ

49、upation of receivable foreign exchange accountsExport enterprises accelerate the documentation transfer, strive to withdraw export documentations as soon as possible,actively take notes trade, factoring and other ways to make timely settlement in hand instruments realizable, and usethis method to im

50、plement the money worth more than half of the export volume into cash. Enterprises should carry outthe more rapid recovery of the export business, appropriate control of the export business with a long recovery period,and at the same time increase the collection of receivable foreign exchange accoun

51、ts, thus shortening the settlementperiod and reducing in-transit funds occupation as soon as possible.3.1.4 Increase foreign exchange liabilities, and strike a balance between foreign exchange income and expenditureThrough the application of remittances, enterprises can replace Yuan loans for foreig

52、n exchange loans, delayingpayment of imports and appropriately increasing foreign exchange liabilities. After the appreciation of the RMB, theamount of outstanding loans due to sell or buy foreign exchange return and external payment can be used to offset therisk of devaluation of foreign exchange a

53、ssets, or directly profit from it.3.2 Main strategies for export enterprises to deal with the long-term appreciation of the RMBIn the evasion of exchange rate risk, the pace of restructuring needs to be accelerated, and the ability of independentinnovation and competitiveness enhanced. By strengthen

54、ing internal management, carrying out technologicaltransformation to develop the potential, and taking the road of branding, this is the long-term and fundamental solutionto enterprise development.3.2.1 Enterprises carry out the going out strategyWe ought to solve problems related to ideas, accelera

55、te the pace of opening to the outside world, and encourage strong,qualified enterprises to conduct foreign investment and overseas acquisition of the ore, nonferrous metals and otherimportant resources. In particular, electrolytic aluminum enterprises should give full play to the available import-ex

56、portrights, invest in foreign nations and establish a supply base of stable alumina, bauxite and other resources. In the case ofthe appreciation of the RMB, the prices of imported raw materials can increase, further reducing production costs. Weshould seriously study the feasibility of setting up fa

57、ctories in developing countries and regions, develop new products,and increase the technological content of products. The value-added products should be increased, enterprise costsmanagement strengthened, and production and operation costs lowered. The government should choose lowvalue-added process

58、ing enterprises with sales network support them to set up production plants and put departments andservices at home in these countries with lower labor costs, which can not only use goodwill and marketing networksbuilt up for many year, but also keep part of work positions, thus achieving the curve

59、exports and reducing the tradesurplus with major trading countries and the pressure on RMB appreciation.3.2.2 Optimize the structure of export commodities, and vigorously develop the international marketExport enterprises, especially production-oriented enterprises, ought to actively use new technol

60、ogy, develop newproducts and continuously improve the value-added products, reducing the exports with lowest profits and expandingown-brand product exports of good quality and efficiency. In addition, export enterprises should conscientiouslystrengthen the costs and cost management of procurement, p