Meanwhile in China, inflation is less than 1.5%, interest for money market fund is 2.4%.
You earn risk-free 0.9% if you hold them in CNY. You lose 7% if you hold them in USD.
Your choice now?
This is false, you are exposed to risk in changes in foreign exchange rates.
The yuan is pegged to the dollar, so it has the same exposure to fluctuations in fx that the dollar has. (Not to mention the fact that the Chinese government periodically adjusts its exchange rates)
1 year? 5 years? 10?
Your comment amounts to “yuan appreciation against the dollar is a sure thing”. Which in finance seems like a suspect statement.