The offshore Chinese yuan remained weak around 7.32 per dollar on Thursday, maintaining its recent decline as markets digested escalating trade tensions between the United States and China. Investor sentiment continues to be weighed down by renewed tariff threats from the Trump administration and geopolitical friction surrounding global supply chains.

The latest pressure stems from Washington’s announcement of new national security investigations targeting semiconductor and pharmaceutical imports — two critical sectors with deep reliance on Chinese and broader Asian supply networks. The probes could result in fresh tariffs, further straining bilateral relations and fueling concerns over a protracted trade conflict.

These developments come in the wake of recent reversals in US tariff policy, including a temporary halt to reciprocal duties, exemptions on key consumer electronics, and suggestions of a possible delay to the planned 25% tariff on auto imports. However, the mixed signals from Washington have done little to calm investor uncertainty.

In response, Chinese President Xi Jinping took a strong stance, warning against protectionist measures. Speaking at the launch of a Southeast Asia diplomatic tour, Xi emphasized that “no one wins in a trade war,” reinforcing Beijing’s strategy of regional engagement to counterbalance rising US pressure.

China’s continued efforts to strengthen ties with ASEAN nations reflect its broader pivot toward multilateralism, even as the yuan faces downward pressure from global investors wary of intensifying trade headwinds.