RMB is much undervalued.

All suggestions of yours should be done just oppositely if China took any actions.

China has a very solid physical economy, and has produced ~50% goods or materialized products of the world annually with less than 20% population. In last 2.5 years China consumed more cements than the USA did in the last 100 years, suggesting that China has much bigger economy than the States in whatever criterion. China physical GDP (contributed by industry and agriculture) in 2012 surpassed the sum of US, Japs, and Germany. Therefore, China is doing much better in terms of economic and social development, and will focus on improving the living conditions and standards of Chinese people regardless whatever circumstances outside of the nation.

Only thing I am concerning is that China needs build up stronger muscles. Three thousand nuke warheads are the basic number China should have, although some thought one thousands are enough (that is the number China currently has).