Much simpler reason, in my view, why China hasn’t devalued—and why the Yuan has actually strengthened since April 2nd:

• Beijing needs a strong CNY to advance its core strategic goal: de-dollarization and encouraging trade partners to transact in yuan.

• A devaluation would be self-defeating—inviting fresh retaliation from the U.S./EU that could erase any competitive gains. Revaluation, on the other hand, reduces tensions.

• There’s no urgency—data shows China’s high value-added exports remain highly competitive even without FX help.

• Thanks to Ukraine-related sanctions, China enjoys some of the world’s lowest energy import costs—a structural edge.

• A strong yuan is also critical to curb capital outflows and maintain domestic financial stability.