Sixty percent of Chinese exports do not come from China but from other countries. Objects and products are only partially manufactured in China as it happens with other countries that are part of the Global Productive Chain. Sometimes the other 60% come from a countries such as Taiwan, Korea or Japan.

Asking the Chinese to revalue the Yuan might not be best of all solutions after all. Our economies are so interdependent that we could be negatively affected in other ways that we might not have taken into consideration. If the dollar depreciates against the Yuan or if the Yuan raises its value against the dollar, the average Chinese citizen that budgets its income carefully every month to allow for a portion of hers or his salary to buy dollars and save, might no longer do it. Therefore a stronger Yuan could have unwarranted repercussions for our economy. Every year most of Chinas savings (416 billions) come to the USA to buy U.S. Treasury bonds while at the same time in between 300 to 400 billion of annual Chinese savings go to buy Corporate bonds. If this capital flow was interrupted our economy would probably go into a recession because of a lack in liquidity and the fact that the feds will then have to raise interest rates.

On the other hand countries like Chile, Argentina, Brazil and Peru that buy our products, with a decrease in American productivity will see their exports to China( metals, minerals and commodities in general) seriously
compromised since Chinese production will slow down, and once their exports get cut down they will purchase less American products.

In deed since 1997 we have lost and average of 1% of yearly inflation because of Chinese imports being so cheap, something that is very good for our economy.

We certainly have to become more competitive and protect our industries and employment from moving abroad but at this point because of the economic entanglement and interdependence with China our protective strategies need to be carefully studied and analyze before implemented.