China has recently adopted a cautious approach amidst rising tensions with the United States, which has increased tariffs on Chinese goods by 54 percentage points. The Chinese Yuan has weakened slightly in response, with analysts suggesting that a more substantial devaluation could pose significant risks to global markets. Despite the pressure from tariffs, which are now at a cumulative rate of 54%, experts believe China may avoid a drastic devaluation in hopes of negotiating with the U.S. The ongoing trade war's trajectory is closely tied to the Yuan's performance, as any sharp weakening could exacerbate market corrections and impact global equities.