PBOC still wary of CNY weakness despite tariff threat

The 2% fall in the renminbi since the US-China trade war flared up again reflects market pressure more than a deliberate policy choice – Chinese policymakers have actually been trying to slow its slide. If trade talks break down entirely, they would have less incentive to keep doing so. But it still seems very unlikely that they would go further and actively try to weaken the renminbi to hit back at the US.