Re: China devalued their currency to offset the U.S. tariffs. But China is between a rock and a hard place. Tariffs risk severe damage to their fragile economy

Re: China devalued their currency to offset the U.S. tariffs. But China is between a rock and a hard place. Tariffs risk severe damage to their fragile economy if not offset with currency devaluation. But, with the enormous debt burden the Chinese are now under, currency devaluation creates the real risk of capital flight from the country - and makes it more difficult for China to service it’s dollar denominated debt. Trump knows that China is in a weaker position than the US. However, all this gamesmanship (and gameswomanship) risks crashing both economies (and the world economy). Trump is willing to play chicken as long as the US has the edge. But chicken is still a risky game. An interesting economic experiment is underway. Unfortunately, we are the lab rats.