China is absolutely right in resisting calls from the U.S. to revalue its yuan, said Andrew Freris, senior investment strategist, Asia at BNP Paribas Wealth Management, noting that this is a "very U.S. dollar-centric" world.
"First, nobody says anything about the euro... if the renminbi is pegged against the US dollar and the euro has now strengthened significantly against the U.S. dollar, then the renminbi has depreciated very significantly against the euro," Freris told CNBC Wednesday.
The recent tough rhetoric from President Barack Obama and Congress over the value of the yuan is "pure politics," according to the strategist.
"A very significant deceleration in export growth will knock out only a few basis points of GDP growth out of the United States. And it will make zilch impact on the American economy because exports in the American economy (are) less than 10 percent of GDP, 10 percent of which goes to China," Freris explained.
The impact on exports will only be about one to two percent, should the renminbi be devalued, he said.
Although Chinese Premier Wen Jiabao has warned that a 20 percent yuan appreciation would bankrupt many exporters, Freris said he believed a strong yuan will have no impact on its economy as it is not driven by net exports, but by investment and consumption.