In addition, with the dollar on the rise, China will feel less pressure to revalue its currency, which is pegged to the dollar. This will allow its leaders to save face and permit them to focus on fixing their domestic financial system, which needs a lot of fixing.
...tensions with China and increased inflationary pressure. And, if you ask me, it has increased the US trade deficit by making strategic imports like oil more expensive.
I don't think the increase in the value of the dollar is going to help the trade issues that the US has with China. The Chinese currency will remain the same ratio, if anything a stronger US currency means a stronger Chinese currency with respect to the rest of the world. It means that for Chinese it is just as hard to buy US goods as before yet EU goods will get relatively cheaper. So more EU goods will be bought and less US goods. The trade deficit will possibly increase for the US...