According to China Securities Journal, the central parity of the RMB against the US dollar was lowered by 492 basis points on July 12, the latest at 6.6726 yuan, the largest since January 10, 2017. Previously, the Chinese yuan was already in June. Set a record for the biggest monthly decline.

The renminbi continued to depreciate, and some international people expressed concern. An expert from Peking University said that the recent fluctuations in the RMB exchange rate did not exceed a reasonable range. From a global and long-term perspective, the recent fluctuations are more indicative of market sentiment than the second half of 2015. There is absolutely no need to overreact to this. The renminbi is still relatively strong in the global currency. In the first half of the year, the RMB exchange rate against the US dollar depreciated by 1.7%. In the same period, many emerging market countries have seen a large depreciation of their currencies against the US dollar. Under the circumstances that China's economy is running well and foreign exchange supply and demand are balanced, the RMB exchange rate is fully conditionally stable at a reasonable and balanced level for a period of time now and in the future.
 
For plastic enterprises, the relative depreciation of the RMB in the trade war between China and the United States is relatively good news, because the depreciation of the RMB will benefit the export of Chinese enterprises' products.
 
Depreciation eases economic pressure and promotes the development of export-oriented enterprises
 
China is an export-oriented economy, and its external exports occupy an important position in China's economic development. One of the reasons why the United States launched a trade war against China is that China’s trade surplus with the United States reached 500 billion U.S. dollars (US statistics). However, the outbreak of the trade war between China and the United States will inevitably lead to a decline in the export of China's products. According to the information on the China's import and export situation in the first half of the year held by the State Council, the first half of China's trade The surplus narrowed by 26.7%. It is expected that the trade surplus will continue to narrow in the second half of the year due to trade wars.
 
The depreciation of the renminbi can reduce the cost of products for export-oriented enterprises, thereby increasing the export volume of products. China's plastics industry has already begun a globalized layout. Whether it is the European market, the American market or the South Asian market, it has the shadow of China's plastic products. With the opportunity of RMB depreciation, plastic enterprises strive to increase the export volume of products, continue to expand the international market share, and take this opportunity to optimize the structure of export products, develop new products with high efficiency, low pollution and high-tech content, and realize industrial structure optimization. upgrade.
 
Promote the development of national enterprises and promote employment
 
The depreciation of the renminbi will weaken the foreign purchasing power of the renminbi, which will lead to an increase in the cost of imported products and the need to spend more money to purchase imported products, which will bring opportunities for the development of China's national industry. As the price of imported products has increased, some consumers have turned to lower-priced alternative products. The products of the national industry have obvious advantages in price, and the depreciation of the renminbi can provide impetus for the development of the national industry.
 
After the depreciation of the renminbi, the reduction in imports will reduce the competitive pressure on domestic products, the sales of domestically produced goods will increase, and the number of jobs will increase. At the same time, as exports increase, the profits of export enterprises will increase, which will lead to an increase in employment opportunities. . Plastic machine enterprises can take this opportunity to actively expand the international market while expanding the domestic market, expand the scale of enterprises, increase corporate profits, enhance competitiveness, and thus enhance their own strength.
 
Conclusion
 
However, the depreciation of the renminbi is not favorable. The depreciation of the renminbi will increase China's external investment costs, increase the cost of imported enterprises, and lead to problems such as deepening trade frictions between China and other countries. In recent years, China's plastic enterprises are actively responding to the country's "going out" strategy, and foreign investment is greatly improved. However, the depreciation of the renminbi will reduce the purchasing power of the renminbi and increase the cost of foreign investment. Plastic enterprises should pay attention to this point in order to avoid disadvantages.