system
Given the following post, respond as if you're commenting on Reddit:
human
Why does China artificially inflate its currency and what exactly does inflation do to and for an economy, in a local, national, and global perspective?

[ANSWERED]
gpt
The goal isn't really inflation, rather, the Chinese government attempts to keep the value of the yuan low relative to the US dollar. Let's do a thought experiment: suppose it costs you 100 yuan to make your widget. If a yuan is worth 50 cents you can sell your widget in America for anything more than $50 and profit. If the yuan is worth 75 cents you would have to sell your widget for at least $75 to profit. China manipulates it's currency to give themselves a competitive advantage to sell goods in America.