It’s hightime that China must relook @ their pegged currency

I strongly agree.It is unfair and unethical to control a currency to boost trade.

This would not augur well in the long run.

I fully agree with his arguements.

Right you are

The way Japan went everyone has to learn the lesson that on lower exchange rates it is counterproductive for such countries in the long run. Reason being high local inflation which will spur up asset prices and citizen needing to meet contingencies will invest in them by borrowing. Then the market stagnates and price fall, financial institutions call for their money and the price busts sending the economy into a downward spiral.

Moreover at the same time if the oil prices go up, then the economy is in double whamy and the only recourse is revalueing the currency which could have been done in the first place making life easier for citizen in running their daily lives and avoiding such troubles.

I feel if the Chinese don't learn the lesson from the Japanese then they will also in the long run will be forced to face the same consequences as the Japanese.

The better option for them is to develope the whole country and create a big local market rather depend entirely on trade.

An artificial exchange rate was vital in the growth of Chinese economy, flooding world markets with cheap Chinese goods. Especially this is troubling us, devaluing dollar turning otiose.

Earlier when japan tried the same with us, what followed was embargo. Yes, we should force china to have more flexibility in it’s exchange rate.

But I have also seen reports though supporting de pegging, recommends a phased transition with reference to us. With capital inflows also between china and us, the relative effect should also be considered. May be this and huge dollar reserves of china are affecting the bargaining power of us.

From India’s point of view, it will have a positive impact on capital inflows.

China is fully depend on Exports, so they must rethink about exchange rate becoz of the volatile market which will affect them badly.

Obviously, China's currency has to be revalued as it creates, unfavour of Chinese exports in the global market. 

China’s rapid economic growth is highly export-dependent than it’s own internal consumptions. As a result, their economy has kind of become a function of export which they control with their pegged-currency !...this dependency makes them vulnerable in the process.