China is only an industrial super power because they keep their currency fixed.
That's quite an exaggeration. They prevent their currency from appreciating by printing more of it, this makes Chinese goods cheaper to foreigners and subsidizes exports. However, it simultaneously limits imports and stifles growth in other ways. If "fixing a currency" was all it took to become an industrial super power, we'd see lots more industrial super powers.
I have heard that the PRC is starting to see some inflation, although i do not have hard facts. But i do know, the moment they stop fixing the the RMB, the industrial base will not be able to be sustained.
They're not "starting" to see it - they are the ones causing it and it's not a new phenomenon. As mentioned above, the way they keep their currency debased is by inflating it, so of course there is inflation
The moment they stop fixing the RMB, it'll appreciate, the average Chinese person will suddenly have vastly higher purchasing power, and their economy will change/evolve to cater to the new dynamics. Their industrial base may strengthen after such an incident, as domestic demand may outpace the fall in foreign demand. Too many factors to make conclusive statements like that. Economies are dynamic creatures.