Actually, everyone in China does have more and more printed Chinese money. In order to maintain the currency peg, and to actually get the US dollars from the ha

Actually, everyone in China does have more and more printed Chinese money. In order to maintain the currency peg, and to actually get the US dollars from the hands of industry into the hands of the government... the Bank of China has to print lots and lots of money. The entire phenomenon can be thought of as the USA exporting inflation to China. On a smaller scale, this is actually a good idea. It's known as building a foreign currency reserve. It serves as buffer against inflation. If the Renminbi were to spiral out of control, they could adjust the peg, give US dollars back to the people in exchange for large quantities of Renminbi, and just retire the money. People would keep their holdings denominated in the dollar until things settled down with Renminbi. Every country has foreign currency reserves. In fact, with a stable foreign currency, building a foreign currency reserve is the safest way to inject money into an economy. Generally, it is thought that Chinese holdings of American debt are far larger than necessary for an effective foreign currency reserve.