If not, the margin will continue to change, as reflected by the movement in the exchange rate. This graph describes the relationship between the exchange rate and the export. China is a large country that depends increasingly on internal demands, and boasts a fairly complete set of categories in manufacturing industries and a relatively sound industrial system.
China’s monetary policy should adhere to “self-centeredness”, so that it can effectively support the real economy. Besides, we should also give consideration to international factors and strive for a favorable external environment. When designing exchange rate policy, we should keep the exchange rate flexible to make the balance more robust and resilient, and sustainable in times of shock.