Right now if a product in China costs 100 rmb straight off the factory floor...
In dollars that equates to about $12.
A US manufacturer could make the same product at $14.50 each.
Under those circumstances the Chinese version is 17% cheaper, not in China, but in the US.
If the rmb is revalued to a proper level...but for the sake of this discussion lets just say instead of 8.3 to 1, it will go to 7 to 1...(about a 15% correction)
(please note that the average claim is that the RMB is about 30% undervalued)
The Chinese version then costs about $14.30...that is only 1.5% cheaper...thus allowing the US companies to compete. Also you have to realize that you would still have to get the product from China to the US...
If the 30% undervalue number is correct (and its close) then the exchange rate then goes to about 5.8 to 1.
In those circumstances the 100rmb product then becomes $17.25 in US dollars... In those circumstances the US product (@ $14.50) then becomes 16% cheaper...