Yuan value is artificially pegged by action of the govt of china. If it's allowed to float, it may go up. In that case, Chinese exports may decline. Other nations with free floating currencies, which had lost business to China may gain some of that back. US has asked China without success to let it float freely like other nations. China acts protectionist like underdeveloped nations and yet sends a probe to the moon- like few developed nations. It can get away with this because of its nuclear stockpile- being a big bully! Example: Taiwan currency floats. According to wikipedia "In the history of the currency, the exchange rate as compared to the United States dollar (USD) has varied from over 40 TWD per 1 USD in the 1960s to about 25 TWD per 1 USD around 1992. The exchange rate has been around 33 TWD per 1 USD in recent years". Today's rate: 1 Taiwan dollar = 0.030994 U.S. dollars. Not so with Chinese Communist Yuan.