【正文】 capital account, the socalled double surplus. Under this circumstance, some economists advise the government to enlarge the daily range of RMB exchange rate fluctuation and quicken the pace of RMB appreciation. On the other hand, some scholars argued that enlarging the RMB daily floating range will make RMB appreciate so rapidly under the prevalent expectation of appreciation that it will impact negatively Chinese export, employment and social stability finally. As the key issue on choosing the best suitable exchange rate system to boost the development, many economists study how the exchange rate volatility impact trade theoretically and empirically, with different theoretical models and empirical conclusions. Cushman(1983) argues that riskverse trader would low their trading volumes facing with the exchange rate risk. Doroodian (1999) and Krugman (1989) emphasized exchange rate risk is detrimental to trade especially when the traders can not be accessible to the hedging tools or the hedging cost is too high . On the other hand, some scholars, such as Sercu and Vanhulle (1992), Dellas and Zillberfarb (1993) suggest exchange rate volatility may stimulate trade flows based on the hypothesis that the trade contract could be treated as an option, which means more risk can induce more profit. Cote (1994) concludes that the empirical literature can not give explicit relationship of exchange rate volatility and trade volumes. For the past several years the RMB is a hot issue because of the trade surplus and vast reserves, many scholars illustrate the effects of the fluctuation of RMB exchange rate on trade volumes, employment and growth in China, but a few relating to the RMB exchange rate volatility. Chou (2021) give the conclusion RMB exchange rate volatility has negative impact on trade. Li and Voon (2021) analyze the exchange rate misalignment and volatility impact on different sector export of manufacturing industry. By focusing on the behavior of ForeignInvested Enterprises (FIEs), this paper also tries to illustrate the relationship of RMB exchange rate volatility and trade flows 2 GU Yu , The Analysis of RMB Real Exchange Rate Asymmetric Volatility Impact on ForeignInvested Enterprises Export and Import in China International Conference of Management Science and Engineering, 2021 : 1641 1647 from a different angle. The reasons for focusing on FIEs are as follows. Firstly, because of the two decades macroeconomic policies of attracting Foreign Directed Investment (FDI) and encouraging exportoriented FIEs, the FIEs play a very important role in Chinese trade and contribute lots of trade surplus. So it will be necessary to study how the exchange rate affects their trade. Secondly ,the FIEs tend to have superior market status in international market, more experience dealing with risks, more access to the world financial markets, pared with the statedowned or private enterprises in China. So it is natural to ask whether the FIEs can avoid the exchange risk as a special group. Thirdly, many Chinese FIEs take the processing trade pattern, it shoul