One of the top imponderables of 2025 is whether China might devalue the yuan.
It was a decade ago that Beijing shocked global markets with a sizable downward shift in the yuan exchange rate. Now, analysts are buzzing about the odds China might counter a Donald Trump 2.0 presidency and its threatened trade wars with a weaker currency.
The 60% tariffs Trump threatens to impose on China could shoulder-check an economy already slowing under the weight of a once-in-a-generation property crisis.
Weak retail sales, record youth unemployment, a fast-aging population and deflationary forces aren’t helping economic matters. Trump advisors also have telegraphed moves to weaken the dollar to gain a trade advantage.
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