This paper empirically examines the impacts of exchange rate on the real economy in China. Leveraging the variation in RMB exchange rate in China, the analysis finds that the appreciation of RMB had a negative impact on the export of the manufacturing industry and that the effect varies across industries. The appreciation of the RMB promoted the export of high-techand capital-intensive industries and restrained that of the low-capital and labor-intensive industries, tilting the overall export structure toward high-tech and capital-intensive industries.