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.

Trade wars and tariff wars have no winners, do not serve the interests of any party, and are not beneficial to the world." Trump has also frequently made the U.S. deficit a focal point. Last year, the U.