Trade war is causing the global equity markets to fall. The CNY Chinese Yuan depreciated to below a critical 1 dollar to 7 Renminbi level.
The only weapon China has in trade war is their currency via “manipulative devaluation”. China is hitting back at President Trump to make purchasing their goods look a little bit attractive. Companies are anticipating longer term trade tensions affecting the economics behind operating a Chinese factory and regardless of currency moves, firms that manufacture goods in China are spooked and beginning to move facilities to other south eastern Asian countries to circumvent tariffs.