Diversity is the best means of defense
Premier Wen Jiabao has been a bit naive. He thought he presented his case perfectly that the yuan is not undervalued, without understanding why Americans would fly into a temper. Nobel Prize-winning economist Paul Krugman's call for taking on China was a direct reaction from what the Chinese press called the US government-business-academic coalition against China (smacking of the so-called military-industrial complex in the Cold War era?).
Whether it will bear any actual consequences in business, the yuan is first of all a political issue. Politics often requires its enthusiasts to show their toughness by taking on other people or refusing to yield to outside pressure, especially in an overall crisis where people don't want to know how it really got started.
When an issue gets politicized, people tend to devote their passion to fighting for fighting's sake rather than seeking a useful solution. It is convenient to appear tough rather than solve problems.
