Summary:This article begins with the background of the appreciation of RMB,and comprehensive exposition of the RMB exchange rate mechanism , focuses on the impact on chinese economy of reva luation of RMB, including positive and negative effects, using basic economic models and data analysis, detailed proof of the strong appreciation of the RMB's possible effects on the Chinese economy,and summarized the strategy of Chinese government should to. At the end of the article, the author has made his own views on this issue, analyzed the present situation of RMB reva luation, came to a timely appreciation of the RMB will have an inestimable positive significance for China's economic development in the conclusion, and put forward reasonable proposals.