Chinese Yuan Falls to 17-Year Low Amid Trade War

The Chinese yuan has fallen to its lowest level in 17 years, closing at 7.3498 per dollar, as the trade war with the United States escalates following President Trump's imposition of a 104% tariff on Chinese goods. This devaluation is part of China's strategy to support its export-driven economy amidst ongoing tensions, with the People's Bank of China actively managing the currency's decline. Chinese officials are seeking new trading partnerships, engaging in negotiations with the European Union to discuss electric vehicle pricing and investment ties in the auto sector. Economists suggest that a weaker yuan could help mitigate the impact of US tariffs on Chinese exports, although there are concerns about the potential long-term effects on confidence in Chinese assets. Meanwhile, the US has accused China of currency manipulation in response to these tariffs. This situation highlights the complexities of the economic battle between the two largest economies in the world.