1 Manufacturing groups in the United States can be harmed by an underval ued Chinese renminbi Since an undervalued currency encourages exports and encourages foreign investment due to this drop in prices 2 Consumer groups from foreign countries might benefit from an underval ued Chinese renminbi As prices are lower due to a weakened currency it en courages these consumers to buy goods at a low price 3 China determined that supporting the value of the renminbi was in its best interests as it was growing economically Weakening the value is beneficial for poorer countries to encourage exports and China had evolved into a su perpower not requiring a weakened currency to encourage such activities It had to grow domestically now and had to support its currency s value
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