RMB hit a new high on Nov 29th since it appreciated, closing at RMB 8.076 per US Dollar on China Foreign Exchange Center. The People’s Bank of China states that the free conversion of RMB relies on China’s economic development, international payment, etc, but until now there is no timetable thereof. Chinese Government declared that from Jul 21st 2005, a system of floating exchange rates, which is based on market supply and demand, brought under control and management by means of referring to a package of currencies, would be initiated; the exchange rates of RMB would no longer be pegged to single dollar, which would give rise to a more elastic mechanism in respect of the formation of RMB exchange rates; and RMB would appreciate by 2% against dollar. Thereby the reform designed to make RMB exchange rates more flexible is initiated. The appreciation of RMB would exert an impact over China’s whole economy, especially the export sector. China’s import and export rose respectively by 18% and 20% each year on average over past ten years. The foreign trade has been growing obviously faster since China’s entry into WTO○1 in 2001, which has increasingly been enhancing China’s status on international trade stage.