1 2 ▁and ▁ 2 0 1 9 , ▁China ' s ▁infl ation ▁has ▁been ▁persist ently ▁low , ▁around ▁ 2 %. ▁ ▁An ▁under valu ed ▁ren min bi ▁would ▁contribute ▁to ▁very ▁large ▁port folio ▁foreign ▁capital ▁in flow s , ▁motiv ated ▁by ▁expect ations ▁of ▁quick ▁appreci ation , ▁adding ▁pressure ▁for ▁the ▁currency ▁to ▁rise . ▁ ▁An ▁under valu ed ▁ren min bi ▁would ▁und erm ine ▁domestic ▁consum ers ’ ▁purch asing ▁power ▁when ▁it ▁comes ▁to ▁goods ▁from ▁outside ▁the ▁country . ▁An ▁under valu ed ▁currency ▁makes ▁foreign ▁goods ▁more ▁expensive ▁in ▁terms ▁of ▁y uan . ▁ ▁Chinese ▁domestic ▁disc ourse ▁Chinese ▁economic ▁re forms ▁in ▁the ▁late ▁ 1 9 7 0 s ▁prop elled ▁the ▁Chinese ▁economy ▁from ▁a ▁closed ▁cent r ally ▁planned ▁economy ▁to ▁one ▁opened ▁to ▁foreign ▁invest ments ▁and ▁capital , ▁orient ed ▁to ▁manufact uring ▁of ▁elect rical ▁goods , ▁text ile , ▁to ys ▁and ▁exports . ▁ ▁has ▁allowed ▁China ▁to ▁become ▁a ▁cred itor ▁country ▁in ▁relations ▁to ▁current ▁accounts ▁and ▁the ▁largest ▁in ▁terms ▁of ▁foreign ▁res erves . ▁ ▁China ▁maintain s ▁that ▁the ▁value ▁of ▁the ▁ren min bi ▁is ▁market - dri ven . ▁China ▁says ▁that ▁its ▁population ▁receives ▁high ▁sav ings ▁from ▁the ▁structure ▁of ▁the ▁economy , ▁and ▁that ▁grad ual ▁increase ▁in ▁domestic ▁consumption ▁is ▁important ▁for ▁its ▁own ▁growth . ▁While ▁the ▁Chinese ▁have ▁argued ▁that ▁their ▁exchange ▁rate ▁is ▁purely ▁a