What are the advantages and disadvantages of RMB appreciation?

First, the theoretical drawbacks of RMB appreciation

1. RMB appreciation will lower the import price and increase the export price, thus stimulating imports, curbing exports, reducing the surplus or even deficit of international trade, causing some enterprises to have difficulties in operation, reducing employment, especially increasing imports of some agricultural products, and affecting farmers' income.

2. RMB appreciation will increase the cost of foreign direct investment, which will have a certain adverse impact on foreign direct investment, thus restricting the increase of foreign direct investment.

3. RMB appreciation will increase the cost of foreign tourists coming to China, and the number of foreign tourists may decrease, which will have a negative impact on tourism.

4. After the appreciation of RMB, the national foreign exchange reserve will depreciate.

After the appreciation of RMB, the country's membership fee in the United Nations will increase accordingly.

Second, the theoretical benefits of RMB appreciation

1, RMB appreciation is conducive to domestic capital investment overseas, breaking the technology blockade of developed countries, indirectly introducing foreign advanced technology, and promoting the technological progress of domestic enterprises.

2. The appreciation of RMB is beneficial for domestic enterprises to invest in developed countries with relatively devalued currencies to establish domestic commodity sales networks, and it is also conducive to reducing advertising expenses in these countries, combining import and export with overseas investment, and improving the comprehensive economic benefits of China's export enterprises.

3. RMB appreciation reduces the price of imported raw materials, which is conducive to improving the international competitiveness of "three to one supplement" enterprises.

4. RMB appreciation will reduce the repayment cost of using foreign loans and improve the efficiency of enterprises using foreign loans.

The appreciation of RMB will reduce the cost of importing advanced machinery and equipment and improve the investment benefit of domestic enterprises.

6. The appreciation of RMB will reduce the cost of importing oil and make China's oil trade gain huge profits.

7. The appreciation of RMB will improve the profit level of most export enterprises, help China's export enterprises to upgrade their technology and products, and enhance their competitive strength and sustainable development ability.

8. After the appreciation of RMB, the amount of RMB used by the state to purchase foreign exchange is relatively reduced, which reduces the monetary input and is conducive to preventing inflation.

9. The appreciation of RMB has improved the international purchasing power of domestic consumers, increased overseas travel and improved living standards.

10, the appreciation of RMB improves the self-confidence of domestic consumers and is conducive to promoting consumption upgrading.