It's at least as much about control. The Chinese don't want people to be able to push their currency around because they fear the destabilising effect of money surging in and out of the country and throwing the exchange rate around.
So they have massive dollar holdings in one hand and a central bank that can print money in another. Effectively they can control their exchange rate from either side.
So they have massive dollar holdings in one hand and a central bank that can print money in another. Effectively they can control their exchange rate from either side.