In The Short Term, The Low Pressure Of Innovation And Low Depreciation Mainly Comes From Outside.

Ministry of commerce data show that in the first half of this year, China's total import and export volume maintained a two digit growth for 6 consecutive months, accounting for 18.6% of service trade and 4.1 percentage points higher than the same period last year.

Therefore, in order to face and solve the difficulties and problems in the reduction of export volume and the continuous decline of profit margins since the last financial crisis, the most fundamental thing is to accelerate the pformation and upgrading of enterprises themselves, and to enhance the competitiveness and pricing power of products in the international market by relying on the continuous upgrading of creativity, design and product quality.

After Trump was elected president of the United States

V shape reversal is still continuing.

The central parity price of RMB was 6.8291, a sharp decrease of 176 points from the previous trading day, which has been down for the seventh consecutive trading day and refreshed the lowest level it has just hit six years ago last Friday.

Although some market participants are expecting a renewed rise in the depreciation of the renminbi, insiders say that the RMB is continuing to break away from the "dollar anchor" in the near future, but it is also pushing the foreign trade industry to accelerate its pformation and upgrading.

Offshore and offshore RMB exchange rates continued to decline.

Data show that in November 14th, the onshore RMB exchange rate dropped from 6.82, 6.83, 6.84 to 6.812 on the same day at 9. At 16:30, it closed 6.8409 and the lowest value in the day was 6.852.

As a weathervane of the exchange rate, the central parity of RMB has fallen by 0.89% last week.

In November 11th, the central parity price of RMB was 6.8115, the first time it fell below 6.8 in more than six years.

Earlier, many analysts said that the renminbi will fluctuate around 6.8 in the year, and this "iron bottom" has been broken.

The decline of the renminbi has nothing to do with the reversal of market sentiment after the US election.

In November 9th, the forty-fifth presidential election in the United States came to a close. The US Republican presidential candidate Trump won the election. This result surprised the capital market. Trump's anti trade and the great attack on the Federal Reserve also set off the "2 euro" earthquake in Britain.

The US dollar index fell to 96.43 from the opening price of 97.87 on the same day.

They rose by 200 basis points in half a day.

The recent performance of the RMB against the US dollar has reappeared in the words "RMB overvalued" and "RMB will continue to depreciate".

But He Fan, chief economist of Chongyang Finance Research Institute, Renmin University of China, and other experts jointly issued a signed article, saying that the devaluation pressure of the RMB exchange rate against the US dollar came mainly from the outside.

In the short term, we should be concerned about the possible market shock caused by the Fed's interest rate hike.

In the long run, we should continue to accelerate the reform of the exchange rate so as to allow the RMB exchange rate to float as soon as possible and eliminate the expected depreciation from the root cause.

China released in September after the National Day

It shows that China's economy has stabilized in the short term.

PPI ended 54 consecutive months of year-on-year negative growth; industrial enterprise profits grew steadily year-on-year, operating income continued to rise year-on-year growth; fixed asset investment year-on-year growth also ended a downward trend.

PMI is more than 3 consecutive months on the ups and downs line.

Therefore, the depreciation of the RMB exchange rate is not due to the deterioration of the fundamentals of the domestic economy.

In addition, since the beginning of this year, the people's Bank of China has repeatedly stressed the need to firmly push forward the direction of reform of the RMB exchange rate anchor from the US dollar to a basket of currencies and continue to push ahead with market-oriented pricing.

In the light of the overall environment of the international exchange market, the market fluctuation of RMB exchange rate in recent months is the steady performance of "breaking anchor" of marketization.

Zhao Pengyong, an analyst with Guangdong securities's foreign exchange market, also said that although the exchange rate of RMB against the US dollar seems to be decreasing greatly in recent trading days, the CFETS index of a basket of currencies remained basically stable.

Foreign exchange dealer Fu Tuo believes that the central bank and the Chinese government are trying to rebalance the economy, reduce dependence on foreign trade and build a stronger domestic economy. The re pricing of the RMB exchange rate is conducive to this effort.

Overall, the recent decline in the RMB against the US dollar is much slower than in 2015, and there is no significant difference from other major non US currencies.

The depreciation of RMB has a certain effect on the competitiveness of Chinese products in the international market. The same total price of purchasing business can buy more products in China, and will definitely choose more Chinese products.

But it is worth noting that in the long run, this part of the profits generated by the exchange rate can easily be put forward by foreign purchasing agents, thus countering the benefits of RMB depreciation to enterprises.

The summer report on China's industrial economy (2016), issued by the Institute of industrial economics of the Chinese Academy of Social Sciences, pointed out that under the situation of the global economy is not optimistic, if we want to further tap the potential of exports, we must constantly improve the added value and competitiveness of export commodities.

Fortunately, we have seen that with the increasing support of the state in the foreign trade industry, the foreign trade structure has been improving and the international competitiveness has been gradually improved.

More and more intelligent manufacturing achievements such as high-tech equipment, artificial intelligence, biochips, big data cloud computing are speeding up to sea in China. Technological innovation is promoting the position of Chinese products in the global manufacturing value chain.