Trump trade adviser warns against currency manipulation as china mulls weaker yuan
China is considering allowing the yuan to weaken in 2025 in response to anticipated higher trade tariffs under a potential second Trump presidency.
This move aims to make Chinese exports cheaper and mitigate the impact of tariffs, as the yuan has already depreciated nearly 4% against the dollar since September 2024.
Analysts suggest that the yuan could drop to around 7.5 per dollar, reflecting a significant shift from China's usual practice of maintaining a stable currency. This strategy may help stimulate the economy but risks capital outflows and could provoke backlash from other trading partners concerned about currency manipulation.

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