The Ministry Of Commerce Recommends To The State Council The Appreciation Of The Renminbi.

Last week, the State Council requested the Ministry of Commerce to report on its foreign trade situation in the first half of this year and put forward policy proposals.

Yesterday, an official source revealed that the Ministry of Commerce has formally recommended to the State Council to slow down the pace of RMB appreciation and raise the export tax rebate rate for clothing, toys and footwear, so as to prevent a sharp fall in exports.

In the proposal, the Ministry of Commerce said that export enterprises need more time to make adjustments, otherwise many enterprises will go bankrupt.

Data released by the General Administration of Customs last week showed that China's cumulative trade surplus in the first half of this year was 99 billion 30 million US dollars, down 11.8% from the same period last year and a net decrease of 13 billion 210 million US dollars.

China's total exports in June totaled 121 billion 530 million US dollars, up 17.6% from the same period last year, and the growth rate was much lower than 28.1% in May.

Affected by the RMB appreciation against the US dollar in the first half of this year and other factors, China's textile exports slowed sharply in the first half of this year, and many enterprises were on the verge of bankruptcy.

Gao Hucheng, Vice Minister of Commerce, said on Monday that he would launch a policy of supporting the export of troubled textiles and other industries at an opportune time.

Gao Hucheng said that in the first half of this year, with the changes in the international market economy and the impact of the RMB exchange rate, there were problems in the export operations of some industries represented by textiles.

The Ministry of commerce is actively investigating and will launch policies at the right time.

This shows that officials are assessing the difficulties of some industries due to the appreciation of the renminbi, and will introduce relevant measures in the future to help enterprises tide over difficulties.

Insiders said: "by the expectation of RMB appreciation, international hot money began to flow into China in 2006 by way of false trade, investment and underground passageways. It not only pushed the price of China's stock market and real estate market to a totally irrational high point, but also doubled the price of some agricultural products (Market Forum) and industrial goods, which led to serious inflation and led to widespread liquidity."

Related reports:

In July 14th, 1 US dollars to new RMB 6.8266 yuan.

The people's Bank of China authorized the China foreign exchange trading center to announce that in July 14, 2008, the intermediate price of the exchange rate between the US dollar and other trading currencies in the inter-bank foreign exchange market was RMB 1 yuan to RMB 6.8266 yuan, 1 euro to RMB 10.8482 yuan, 100 yen to RMB 6.3979 yuan, 1 Hong Kong dollar to RMB 0.87480 yuan, 1 pounds to RMB 13.5443 yuan.

Export growth in June fell below the critical point. Foreign trade policy is now adjusting the pressure.

Zhao Yumin, director of the international marketing department of the Ministry of Commerce, said in an interview with our newspaper that China's export situation is grim this year, and that the two digit growth has been quite good. But the growth rate of 20% is indeed a sensitive critical point. China's foreign trade policy, especially the export tax refund policy, will face tremendous adjustment pressure from the enterprises.

Thematic analysis: panoramic analysis of RMB exchange rate "6 era"

Appendix: Renminbi memorabilia since reform and Reform

2008, 04, 10, the central parity of RMB against the US dollar exceeded 7.

October 24, 2007 after the G7 finance ministers' meeting, the RMB exceeded 7.50

In 2007, 05 months, 21, the exchange rate of RMB to the dollar increased from 0.3% to 0.5%. This is the most important move since the introduction of the market maker system in the interbank market at the beginning of the year, and the first adjustment of the RMB exchange rate to the dollar since the last 94 years.

On 2007, 01, 11, the RMB against the US dollar closed at 7.80, exceeding the Hong Kong dollar for the first time in 13 years.

01. On 2006, 04, the central bank introduced the inquiry trading system and the market maker system to improve the formation of the central parity of the RMB exchange rate.

On 2005 07, 21, the people's Bank of China officially announced the introduction of a floating exchange rate system.

On the same day, the RMB exchange rate rose to 2.1% against the US dollar. Since then, the RMB exchange rate has no longer been pegged to the single dollar.