May be but what additional things are chinese going to buy from outside their country even if the yuan is higher. Almost every single thing is manufactured/produced inside their own country. The only things they need from outside are raw materials, energy and food (I'm ignoring semiconductor industry for a moment which they already consider as their own little island)

Maybe if the peg was not set, then those working under that currency regime would be "not working".

I don't think the Chinese are subsidizing the world for no reason; and I don't think they are the smartest person in the room either.

That's only going to matter if they are buying outside stuff (like Oil). It does not matter to domestic market.

> If the population was educated enough to know they were being stolen from...

This is basically the same argument used by cryptobros and libertarians to criticize inflation.

I think there are pretty obvious tradeoffs with letting your currency amass purchasing power: probably it would shrink the amount of exports (which means that a lot of people might find themselves without a job) and it would make it harder to get a mortgage.

How do you propose that these negative effects would be mitigated?