RETRACTED: Analysis on Impact of RMB Exchange Rate Reform on Foreign Direct Investment (Retracted Article)

RMS exchange rate reform in 2005 has exerted certain impact on foreign direct investment (hereinafter referred to "FDI"). Generally speaking, the macro-impact is not apparent, while the micro-impact is obvious, for example, enterprises speeding up actual capital input, and the desire of exchange settlement of capital of foreign-funded enterprises being strengthened etc. In addition to the exchange rate reform, factors affecting FDI also cover a series of economic and financial macro-control measures, therefore, it is imperative to advance RMB exchange rate reform actively and soundly, further improve RMB exchange rate formation mechanism, reasonably direct RMB exchange rate expectation; further exert overall efficiency of exchange rate policies in combination with other macro economic and financial policies; strengthen the adjusting effect of exchange rate on FDI; appropriately adjust capital exchange-settlement system; improve capital inflow management method; and establish balanced management outlook, strengthen non-on-the-spot monitoring and supervision and direct foreign capital flow orderly.