Why is US uptight about the rising yuan?

The US seems to be quite uptight about the possibility of yuan rising in its value. And, they are decrying the currency policy of the Chinese government. Quite baffling for the layman who wouldn’t delve into the heavy dependency of US on China. Paul Krugman in his article published in New York Times explains the situation very well.

With trade surplus and rising foreign investment, the yuan is bound to rise in value, however, the government has been pumping money overseas to keep the value low. The Chinese government has been accumulating dollar assets in US, enabling US to lower possible budget deficits. And, the US has been relying on this for quite a while so to speak. Any increase in the value of yuan will bring to an end such inflows thereby adversely affecting the US economy.

The article seems to highlight the precarious situation of US vis’a vis emerging powers from Asia. How else would one explain the stance of the US in trying to contain the value of yuan? The US seems to be overlooking the long term benefits such as reviving its glory in manufacturing. The rising yuan would certainly bring back the competitive edge back home and could probably put a lid to mass exodus of jobs shifting to low cost destinations (read Asia).