What specifically would be downside of that?

Like could outside investors by whatever means raise the currency so much that China would be left with a bunch of unsold goods?

The price would be set by outside investors, rather than the central government.  China isn't a capitalist country, it's a Communist one.

**Your submission has been removed for the following reason(s):**

ELI5 is not for asking about a business' or group's motivation. Why a business or other group of people choose to do or not do something is often a fact known only to that group of people. Everyone else can only speculate.

ELI5: Why is China hesitant to completely float the Renminbi?