For now, China's leaders seem to be discounting U.S. President-elect Donald Trump's threats to punish them for allegedly unfair trade practices. The fact is that if they were to let their currency float freely, the yuan would probably decline, undercutting U.S. exports. And if Trump did impose 45 percent tariffs on Chinese imports as he's vowed, China has plenty of ways to retaliate. The ensuing trade war could well hurt the U.S. more than China.
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