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Economics assignment on dismay of Chinese government due to quantitative easing

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 This report is based on the following requirement -
 The following information is from International Business Times (April 4, 2012)
 “China has reacted to U.S. QE in the past by expressing dismay, primarily given the overweight U.S. dollar position in their foreign currency reserves.”
 (Source: http://www.ibtimes.com/exnet/chinese-reaction-fed-qe3-not-happy-797141 )
 Explain the dismay of Chinese government due to quantitative easing (QE) using the FOREX market model discussed in the class. Make sure that you consider the undervalued exchange rate of China while answering the question. Provide neat diagram (s) to explain your answer. (20 points)

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