Analysis of the Impact of RMB Exchange Rate Fluctuations on Guangdong’s Outward Foreign Direct Investment

For a long time, China’s balance of payment has been in a “double surplus” situation which may easily cause imbalance in the country’s economy, so we must keep expanding outward foreign direct investment to ease domestic inflations. Guangdong has accelerated its outward foreign direct investment significantly nowadays. Through descriptive statistics and measurement research, it is found that Guangdong’s outward foreign direct investment has been growing year after year, and the modes are diversified, however, the overall scale is still small. The investment regions are not balanced, and the investment mainly focuses on low-end industries. The relations between outward foreign direct investment and the RMB exchange rate show positive correlation. Based on the findings, it is suggested that we should seize RMB appreciation opportunity to expand the scale of our investment, and optimize the investment structures and investment regions.