The United States is pushing China to higher the value of their currency, which is undervalued by about 20 percent. Raising the value of China's currency, the Renminbi, would support many of the low wage workers throughout Chinas factories, and help bring people out of poverty, giving them some disposable income.
"This is the path that rising economic powers, from Germany to the United States to Japan, have taken before. They start as exporters and then build up a thriving domestic economy. It’s the path China needs to take now, for the sake of its citizens and for the world."
Read more:
http://www.nytimes.com/2010/09/22/business/global/22leonhardt.html?_r=1&ref=economy
Although raising the value of the Renminbi would bring many low wage laborers out of poverty, that would also force big businesses' to pay their workers more, when they rely on cheap labor for their business. In the long-run, a raise in the value of China's currency will ultimately pay off with a better economy as well as higher paid workers. China's big business's must stop corporate greed, and distribute some of the continually growing profits to their low wage workers.
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