Assume China suddenly made decision to give into US demands and, overnight, revalued upwards the Yuan by 20%.
Consider the influence of this increase in value of Yuan on two large US companies: (1) Yum!Brands whose 2007 second quarter profits were $214 million roughly half of which resulted from sales made by KFC and Pizza Hut within China; and (2) Wal-Mart where great majority of products sold in its US stores are made in China.