In the comments, Peter Gallagher refers me to an op-ed by Greg Mankiw on Chinese currency excange rate issue. To me, the key point in the Mankiw piece is this one: Critics of China say it is keeping the yuan undervalued to gain an advantage in the international marketplace.

From a DOC federal register notice: In the conference report accompanying the 2010 Consolidated Appropriations Act, Public Law: 111-117, the conferees directed the Secretary of Commerce to work with the Secretaries of the Departments of Homeland Security and the Treasury to conduct an analysis of the relative advantages and

From his written testimony at the House Ways and Means hearing on China's exchange rate policy: We have a WTO, but what we really need is a world globalization organization. ... Over the longer term, the currently prevailing half-free trade, half-mercantilist system of globalization must be replaced