The Impact of RMB Exchange Rates on China's Import and Export Trades

Abstract

This article analyzes the factors that affect China’s foreign trade and focuses on the changes in the RMB exchange rate and changes in import and export trade. To analyze the data, multivaried regression model, Unit Root test, and Robustness Check are adopted, and the results turn out that the weakening of RMB will reduce the growth of China's foreign exports and imports. The results of robustness check show that the evaluation methods and index interpretation capabilities are robust. To adapt to and improve the exchange rate system and actively take advantage of RMB exchange rate fluctuations, the government is suggested to optimize the structure of export products, strengthen product competitiveness, achieve diversification of export goals, and expand product transaction currencies.