US economy affects global economy

In 2008, half a year has passed, and China's economy has been checked. It should be said that it is facing many difficulties. In March, Premier Wen Jiabao said that the Chinese economy is the most difficult year in 2008.

Why is 2008 the most difficult year?

It can be seen that we are now facing difficult and complicated domestic and international situations.

From the international point of view, the world economy has encountered new uncertainties, which have not been encountered in the past years. These factors are manifested in the subprime mortgage crisis in the United States.

Now the world's total economic volume is 54 trillion dollars, the United States accounts for 14 trillion, is 15.5% of the world's total economy, so once the United States has problems, it will lead to problems in the world economy.

The depreciation of the US dollar and the appreciation of the RMB have weakened China's export competitiveness.

So under such circumstances, the US subprime mortgage crisis has led to problems in the US economy, and the US economy has directly led to problems in the world economy. The world economic problems have led to China's economy, and this series of chain reactions has affected China's exports.

At the same time, the US dollar has depreciated greatly in recent years, and the depreciation of the US dollar has forced our RMB to appreciate.

Three years ago, the US dollar was 1:8.27 against the Renminbi; the 96 year was 1:1.78078; yesterday (July 24th) was 1:6.82.

The depreciation of the US dollar has forced the renminbi to appreciate, and the appreciation of the renminbi has weakened China's export competitiveness.

China's export has encountered unfavorable situations over the past years. On the one hand, the world demand economy has weakened. On the other hand, the RMB has been forced to appreciate and weaken its competitiveness, so everyone is very concerned about the data in the first half of the year.

At present, although exports have maintained a 20% growth rate, the growth rate has dropped 5.7 percentage points over the same period.

It can be seen that some of our export oriented enterprises are facing greater difficulties, including textile, clothing, leather making, shoe making and other export oriented enterprises.

So the complex situation we have not encountered in the past has caused a great impact on China's economy, and some enterprises have also encountered difficulties in production and operation.