As Beijing is pressured to halt currency intervention, arguments are generally proposed in terms of the possible benefits to other countries. Such an argument is less compelling than one that points out how China might benefit from an end to its peg against the U.S. dollar. In any event, China's fixed exchange-rate policy is based upon a misperception about the best way for economies to grow.
It turns out that Beijing is following a contradictory set of policies that paradoxically undermine its own economy while propping up the U.S. economy by accommodating the pump-priming of America's central bank.
China, along with other countries, holds huge stocks of dollars in reserves. For their part, China and Hong Kong are the largest net purchasers of Treasury securities and have spent $290 billion on them. If not for these purchases, U.S. Treasury bond yields would be significantly higher and America's ill-fated monetary expansion would have limited ostensible effects.