dex, Imthink that you will find if you think about it a bit, that it will also result in some diversification of supply by US and other purchasers in a postion to to so.
An example of this was recently reported in the press where Walmart, one of the largese purchasers of Chinese made goods, was planning to diversify its supply to other suitable sources in Asia in anticipation of a change of currency regime by the Chinese.
Also, you must remember, as it is often quoted, that some 60% of all Chinese exports are products from the operations of foreign owed companies in China. These companies make very good profits from this and many will have considerable flexibility of pricing depending on the profile of business strategy and transfer pricing they employ during shipment/trans-shipment.
As is usual for these things, a change of currency regime by China will have some large, easily understood effects, and also numerous, and hard to predict, second and third order effects.
