Cybersecurity

China’s Yuan Move Just a Passing Squall in Sino-U.S. Relations

Chinese cooperation on issues from Iran to climate change is too valuable to the U.S. for a blip in currency valuations to spark a confrontation with its No. 2 trading partner.

U.S. and Chinese national flags fly outside a company building in the China (Shanghai) Pilot Free Trade Zone's Waigaoqiao free trade zone and logistics park in Shanghai, China, on Tuesday, Oct. 22, 2013.

Photographer: Tomohiro Ohsumi/Bloomberg
Lock
This article is for subscribers only.

China’sBloomberg Terminal sudden currency devaluation this month raised new questions about whether U.S. President Barack Obama would shift from maintaining a wary truce with his country’s No. 2 trading partner to confronting it head-on.

Sino-U.S. ties already were frayed by Chinese muscle-flexing in the South China Sea, cyber-espionage and human rights disputes. A potential currency war raised the prospect that relations between the world’s two biggest economies would plunge into a deep freeze.