Has our currency been undervalued? If so, not so severely as what Mr.Krugman put.
He stands on the US side first then to treat with the exchange rate between RMB and US dolars. As a matter of that,what he see are profit of China by so called "undervalued rate".
We must agree it that we have numerous surplus between China and US goods trade.However,does RMB exchange rate should be blamed?China export large numbers of low-price goods and services to US while the US impose restriction on exporting hi-tech goods or high technology to China.That's why the surplus occurs.
So if free trade available,the problem will be solved by the market.
If China has manipulated RMB, the US has protected its trade.