Since the reform of RMB exchange rate from 2005

the RMB exchange rate has been raised constantly

and the fluctuations have increased.The impact of RMB appreciation on China’s FDI inflows are mainly embodied in:First

whether the short-term or the long-term

the devaluation of RMB will be able to facilitate the inflows of FDI

and the devaluation of RMB will be able to curb the inflow of FDI;Second

the fluctuations of exchange rate will have an impact on investors’ confidence

thus affecting the inflow of FDI.But the short-term fluctuations of the RMB exchange rate don’t impact on FDI significantly.In term of the trend

the stability of exchange rate is conducive to FDI inflows;Third

studying the general trend of 30 years

neither the RMB exchange rate nor the RMB exchange rate fluctuations is the decisive factor which impacts on China’s FDI inflows

and the key element is the macroeconomic environment.