Reading comprehension and critical reasoning

Passage:

Current levels of domestic inflation make it a lot easier for the government of China to accept a stronger domestic currency (the Yuan). Until recently, the government was concerned that strengthening the Yuan would lead to domestic deflation. Chinese trade surpluses are resulting in the accumulation of foreign exchange reserves equal to $1 billion a day. Trading partners, especially the United States, are keen to see a stronger Yuan, hoping that it will pull back the level of trade surplus. Imported commodities – the raw materials necessary for China’s manufacturing industry – have become far more expensive and a stronger Yuan will help offset some of these increases.