China's exchange rate changes have limited impact on trade balance.
The study looked at how changes in China's currency value affect its trade with other countries. They used a special model to analyze data from China's top trading partners. The results show that when China's currency goes up or down, it doesn't have a big impact on how much China exports. This means that if China's currency is changed, it won't make a big difference in China's trade balance. Also, previous studies didn't find a clear link between currency value changes and trade. So, even if China changes its currency system, it might not solve its trade surplus problem unless it also changes how it supports its exports.