RMB Exchange Rate Policy in the Context of Sino-US Trade Friction

Abstract

Recently, a series of trade protectionism measures implemented by the United States have made the RMB exchange rate a hot issue debated by theorists and policy authorities. In today's international monetary system, the existence of the hegemony of the US dollar is an objective reality.

This paper takes the relationship between the exchange rate between the RMB and the US dollar as the starting point, combined with the ins and outs of Sino-US trade friction, analyses and studies the exchange rate changes brought by Sino-US trade friction. This paper is divided into six chapters. The first chapter is the introduction, which introduces the background and practical significance of the paper, reviews the relevant literature at home and abroad, and summarizes the logical structure and main innovations.

The second chapter analyses the factors that influence the RMB exchange rate in the context of Sino-US trade friction. The third chapter is an empirical analysis of the exchange rate change caused by Sino-U.S. trade friction. The fourth chapter is the research on solving the Sino-US trade friction; The fifth chapter is the conclusion.

According to the analysis of the previous chapters, maintaining the stability of the RMB exchange rate is the optimal choice for China's exchange rate policy. First, the exchange rate issue is a political issue in the international monetary system with the hegemony of the US dollar.

The US instigates and presses the appreciation of the RMB through various channels, behind which is a very far-reaching national strategy. Secondly, both theory and practice have proved that RMB appreciation could be more effective and reach the expected goal of the policy authorities. Third, the RMB exchange rate policy should play its economic leverage role and serve China's interests.