A Coupling Argument

BANK OF CHINA DISCOURAGES RMB APPRECIATION AS INFLATION SPIKES
The report forecasts that transportation costs would increase notably in November and December which in turn, would lead to price hikes of non-foodstuffs, given increased gasoline and diesel prices by 500 yuan (US$67) per ton.

Inflation pressures.

According to the report, quick and substantial RMB appreciation would cut domestic enterprises' profit margin greatly and hurt domestic banking and capital market, with possible numerous bankruptcies.

Deflation pressures.

That's what we've got. We're stuck between a rock and a hard place as the importer, and they are stuck between a hard place and a rock as the exporter.