Financial markets are betting China will not use the yuan as a policy tool to offset expected U.S. tariffs in a second Donald Trump presidency, based on a view that sharp depreciation like that seen in his first term will be more harmful than helpful to the struggling economy.

For investors in China, fighting another trade war with the US will feel like anything but been there and done that.

China's yuan remains under pressure as the country navigates potential economic impacts from expected U.S. tariffs under a second Trump presidency. Despite the depreciation of the yuan amidst a strong dollar,