The reform of China's energy price in the process of RMB appreciation

摘要

The rapid growth in these 30 years since China's reform and opening up has relied on depressing the price of various production factors to some degree. This condition forms the extended development pattern of Chinese economy, and the reform of energy price and exchange rate system has proven to be the core problem in the process of current transformation of economic development mode. This paper discusses the marketization reform course of China's energy price and carries out empirical analysis about mutual relation between the appreciation of RMB exchange rate (ER) and the energy prices. The result shows that there is positive relationship between the fluctuations of ER and energy prices. That is to say, the appreciation of ER will make energy source prices to drop. So the reformation of ER should be implemented before reforming energy source prices marketization for the purpose of the macro-economic negative effects caused by the marketization reform of energy source prices to be minimum.