China’s Foreign Trade: The Response to Changing the Exchange Rate

Abstract

Based on official data of Chinese and international statistics assessment is given of the impact of the yuan revaluation on the parameters of China’s foreign trade by country (including in terms of crisis tendencies in the global economy). A regression analysis made it possible to obtain quantitative assessments of the responses of China’s foreign trade parameters by country, depending on different yuan revaluation (10% and 50%) to the U.S. dollar. It is found that the yuan revaluation leads to reduction in the growth rates of both China’s exports and imports, with the responses by countries being different

Keywords

• Revaluation
• underestimation
• nominal exchange rate
• real exchange rate
• yuan
• U.S. dollar
• exports
• imports
• China