Yes, Paul Krugman is correct in noting that the US dollar is overvalued, and that the
Chinese Yuan is undervalued.

He only has 800 words, so what should also be noted is that the dollar is not just overvalued versus the Yuan, but versus the whole world, though he does note that the Chinese are deliberately pushing the value of the Yuan in addition.

Since the undervalued Yuan is, at its core, a tariff on Chinese imports, and a subsidy of their exports, it is clear that the sanctions bill in the Senate is justified.

That being said, there are also structural issues that overvalue the US dollar, to the advantage of Wall Street and the disadvantage of Main Street (Hence Robert Rubin’s^* full throated support of a “strong dollar policy when he was SecTreas), and these need to be addressed as well.

^*Why is this corrupt ratf%$# not under criminal investigation?