Problem: The potential destabilization of an economy due to a free-floating currency must be a significant concern to any government, but especially in China where control is important for many reasons.
I have ve been struck by a comment in The Kiplinger Letter (April 30, 2010) that stated that the current crisis in Greece is caused, in part, by the fact that the government can't devalue its currency, so it can't make itself more competitive that way's (p. 3). In the case of Greece, the government is hindered in its response because it has adopted the Euro. Do you feel that China should be concerned about similar civil unrest if the yuan is not handled wisely?
Reference
The Kiplinger Letter (April 30, 2010). Euro Zone. The Kiplinger Washington Editors. Washington, D.C.