The resulting shifts in the structure of production impose costs on workers and business owners in some industries and thus create a constituency that opposes the process of economic integration. More broadly, increased economic interdependence may also engender opposition by stimulating social or cultural change, or by being perceived as benefiting some groups much more than others.
Adopting a more flexible exchange rate regime serves China’s long-term interests as the benefits of long-term price stability and  2  BIS Review 102/2010  economic restructuring far exceed the cost in reorganizing certain industries and removing outdated capacities. At present, a more flexible exchange rate regime will help curb inflation and asset bubbles.