China is not on a silver standard. China is not on any standard. So China is not obligated to have the RMB pegged to the price of silver. China does not have to manipulate its money supply in order to keep the RMB stable against the price of silver. Silver trades freely against the RMB. It can go up or down or in any which direction. Usually silver strengthens against the RMB.
Strengthening the RMB against the dollar would create a variety of things. It would increase China's GDP, increase wages, make Chinese goods more expensive, and make imports appear more cheap. China could still increase its exports by subsidizing its export industry. But subsidizing any industry means they are recipients of higher incomes that they otherwise would not have received. And they will spend that added income on goods and services. A portion of which would be imports.
Employment levels will still remain robust since subsidization and a loose money supply would continue to fuel employment growth.
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