Wow. If Chinese policymakers are as dogmatic as this reporter for China People's Daily, it seems we might have a trade war on our hands.
"Then, the economic pundits and China critics would go on to reprimand China for "intentionally" keeping a lower value of the yuan in order to gain an upper-hand in exports to America, which, these people say, has bankrupted American manufacturers and made Americans jobless. But, will the insolvent factories come back humming and employing, once the value of the yuan is hiked by another 23 percent? Nobel laureate Krugman knows that slightly higher-priced products, made in Mexico, or Vietnam, will replace inexpensive goods made in China on the shelves, and the bread-earners and pensioners will have to pay more. It is fairly unlikely that the multinational companies would retool their plants and contributing jobs in the United States. "....
"To help Chinese consume more American products, the government in Washington needs to relax its Cold-War-perplexing controls on civilian as well as military technologies, because exports of California grapes, Florida oranges and Midwest wheat and beans cannot make a balanced sheet. And, it is important to allow Chinese businessmen to invest in American ventures and buy stakes in local projects, providing permanent jobs to American people and contributing to local government revenues. "