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Loosening the Chinese Yuan control the gradual increase in Chinese reliance on importing energy sources and raw materials is lifting the production costs in China. Loosening the Chinese Yuan control or reducing the printing of money can allow the Chinese Yuan to appreciate. In return, the importing product will be cheaper in commensurate to the appreciation level of Chinese Yuan.The appreciation of Chinese Yuan can allow the Chinese government to release a portion of foreign exchange reserve. Eventually, this measure can bring down the production costs and reduce the tension of employee lay off at the same time
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