People's Bank of China states that it is committed to investing in Europe, the EU stabilization plans, and that Europe will overcome it difficulties. It would like to see stabilization for the simple fact that China needs a stable world to sell its products. It is becoming a better consumer of goods from the rest of the world but the export-driven coastal economy needs to see global growth.
We do not expect to see any action on the yuan until there is a period of stabilization with the euro. This is consistent with the cautious approach after the US financial crisis. Whether this is foot dragging or appropriate caution is not important. Past history has always shown that as volatility has increased, trade has declined which suggests more conservative government policies.