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That was poorly worded. I meant to say that a decline in the dollar's value relative to the Yuan would make American exports, particularly agricultural, more competitive, threatening China's policy of agricultural independence (which it has long enjoyed).  A decline in the value of the Yuan, due to pegging to a declining US dollar, reduces Chinese purchasing power abroad which has negative welfare effects for anyone in China who wants to buy anything made somewhere other than America or China.
by santiago on Fri Nov 6th, 2009 at 10:14:14 PM EST
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