The US has recruited and helped its allies economically by offering a special exchange rate vis-a-vis the US dollar.
Devalued European currencies after WWII helped Europe to rebuild its economy – and build up substantial US dollar reserves.
Favorable exchange rates were rejigged after the 1973 Oil crisis – with European recovery complete.
Next was Japan’s turn. As Japanese economy rebuilt itself, the Dollar-Yen exchange rate was renegotiated at the Plaza Accord.
Asian Tigers followed Japan.
As Asian Tigers ramped their economies, the prop of the over-valued US dollar was pulled by the US.
Asian Crisis followed.
In parallel, the Chinese Miracle was underway.
With China as the world’s 2nd largest economy now, with humongous forex reserves, time has come to deal new hand to China.
How long will China grow at the same pace – with a expensive yuan?