Abstract: Since the reform of RMB exchange rate system in July 2005, China’s 12 main categories of exports have shown different capabilities of pricing to market. From the perspective of exchange rate transfer and processing trade, it can be seen that labor-intensive products without clear characteristics of processing trade display a weak capability of pricing to market, while capital-and technology-intensive products with obvious characteristics of processing trade exhibit relatively strong capability of pricing to market. Therefore, in the context of RMB appreciation being a tendency, China’s enterprises should not only consolidate existing international market share but also improve their capability of pricing to market through industrial upgrading and structural adjustment, so as to further enhance their competitiveness.

Key words: exchange rate transfer; pricing to market; processing trade