The US under Trump is engaging China in a full scale trade war. Look at the tariffs he just put upon solar panels and refridgerators coming from China. History shows that currency wars, where each country tries to get an advantage by devaluing its currency turn to trade wars when this does not work, which then often turn to hot wars. The history of the 1920s and 1930s shows this quite clearlly. If Trump is not careful China might carry through on its threat to dump US bonds!