Long term effect of exchange rate manipulation is ZERO. This is a commonly known rule in macro-econ.
To those who think China is competitive because its currency is cheap, think about this scenario:
China issues a currency that's 100 times the value of the RMB yuan. Everyone exchanges their money for the new money. So the new Chinese currency is worth 15 US dollars per new yuan. What used to be worth 100 yuan is now worth 1 yuan. What used to sell for 100 yuan is now priced at 1 yuan.
Does that make a difference to Chinese/US import/export? You would be an idiot to say that'll make Chinese goods less competitive.
