My impression is that the Treasury is responding to Congressional pressure, which is coming from smaller biz and worker electoral ire over China."
May have mistaken paper with other comments I heard. I don't think we--as opposed to the Chinese govt--know how big are the yuan reserves from sales within the Chinese market. We do know that so much of US corporate profitability has depended not only on operatations abroad but also on the free ride of dollar depreciation. I don't believe that Paulsen gives a damn about smaller biz, much less worker electoral ire. Perhaps he's talking tough for votes but if he's serious about sharp yuan appreciation I can only imagine it's on behalf of corporate profits. Though I accept your skepticism, and have only the most qualified belief in this. It's another angle.
Rakesh