ABSTRACT
The following analysis looks at the impact of exchange-rate changes in China from a microeconomic perspective. It evaluates the impact of RMB appreciation between the years 2005 and 2008 on foreign-trade related enterprises and industries in China. It looks at the impact on their imports and exports, their costs, the interest rates on their debt, their size of overall investment, and their production technologies. It seeks to understand the impact of exchange-rate changes on the restructuring of China’s economy and the upgrading of its industries.
