if the Chinese currency appreciate, the most significant point would be on the international trade, because in china, most foreign trade use USD, when Chinese yuen/usd increases, domestic producers receive less usd, they suffered, however, they may transfer the pressure to reduce the quality, price of input, so reduce the wage rate could be one of their solutions, in that case, the labor will get less paid. In china, there is not minimum wage regulation, so the final result of currency appreciation will transfer to labor market and other input market. set a minimum wage rate could be a solution to solve the problem.
On the other hand, the foreign company will seek for other cheaper labor market, if this happen, the GDP will fall dramatically, there is a dilemma.
My opinion is the American uses Chinese currency to solve the unbalance in their international trade and one example is the Japanese yen in last century.

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