China is actually trying to prevent or slowdown the
depreciation of its currency:
http://blogs.wsj.com/economics/2016/09/15/donald-trump-is-a-few-years-behind-on-the-china-currency-problem/
“In fact, over the last two years, Beijing burned through nearly a quarter of what was once a $4 trillion currency stockpile to prevent the yuan from falling against the dollar. The yuan has still weakened against the dollar as the U.S. economy strengthened and the Federal Reserve signaled an end to its cheap-money policies. But it hasn’t fallen nearly as fast or as far as many expected it could or should go. That effort actually prevents the U.S.-China trade deficit from worsening.”
Related:
http://www.international-economy.com/TIE_Su16_Katz.pdf
“In fact, over the last two years, Beijing burned through nearly a quarter of what was once a $4 trillion currency stockpile to prevent the yuan from falling against the dollar. The yuan has still weakened against the dollar as the U.S. economy strengthened and the Federal Reserve signaled an end to its cheap-money policies. But it hasn’t fallen nearly as fast or as far as many expected it could or should go. That effort actually prevents the U.S.-China trade deficit from worsening.”
Related:
http://www.international-economy.com/TIE_Su16_Katz.pdf