BEIJING • The Chinese government last week aggressively devalued its currency – the clearest sign yet that it is hunkering down for a protracted fight with the United States over trade.

Currency devaluation is the mother of all retaliations. The move, designed to help offset the Trump administration’s tariffs against China, could goad America into a currency war, and that would rattle the global economy more than any trade war.

Please subscribe or log in to continue reading the full article. Learn more about ST PREMIUM.

  • Exclusive stories and features on multiple devices
  • In-depth analyses and opinion pieces
  • ePaper and award-winning multimedia content