First, because of relatively high productivity gains in Chinese manufacturing versus U.S.manufacturing, the Balassa-Samuelson model would predict a considerable real appreciation ofthe Chinese yuan based on consumer prices. Given a fixed nominal exchange rate, this realappreciation could be achieved via relative consumer price and wage increases in Chinacompared to the US—as ever increasing wages in China spread into services and non-tradableactivities with lower productivity growth than manufacturing. This internal real appreciation is apreferred alternative to having nominal RMB appreciation.

根据实际汇率的公式，q=E.P*/P, 在名义汇率E不变，国内价格P相对于国外P*升高时，实际汇率q应该下降啊。名义汇率E为直接标价。不是很懂上述英文的逻辑，因为正好和公式相反