The Chinese generally like a weaker yuan because it helps China to export more. Given the current situation in China, I'm not sure many nations would criticize the Chinese for letting the yuan depreciate.
China is in a real conundrum right now. If the offshore yuan stays in the 6.90 to $1.00 USD range, that's decent (good) for Chinese consumers. Means there's less food inflation, and other similar markets.
However, not so good for exports. They are likely to become more expensive, and nations which are currently net importers of Chinese products are going to become more nervous over transportation/importation of more Chinese products.
The boards here are indicative of this. This board is a fairly well informed community. And we've already brought up these concerns and discussed them fairly intelligently. Imagine what happens in another 2 weeks or so IF the USA ends up with 100 confirmed cases and 3-5 deaths.
What's going to be the prevailing opinion of the general population over made-in-China products at that point? Remember who's going to be carrying the message (MSM). We already know we have a sensationalist news media where there's an unspoken rule of "If it bleeds, it leads".
So China has to deal with a set of policy choices where none are good:
1. Your marketplace for your exports starts to become increasingly nervous & skittish due to a potential global pandemic which originated in your country.
2. You NEED the foreign exchange from the exports. So China has to make the offshore yuan cheaper (say above 7.00 yuan to $1.00 USD). But then China has broken the Trade Deal 01 & Trump has to take action. Remember, there's not much slack left in the System.
3. IF China exports drop, that's fewer jobs. And that means political instability in China.
OR (go the other way)
4. China HAS to maintain internal political instability at all costs. No matter what.
5. That means you have to keep the offshore yuan in the 6.9 to $1.00 USD range. Otherwise the population is going to start having food instability. There's already a feeling (which appears to be growing) that both the local governments, and the central government are incapable to handling this situation.
6. Result (IF things keep going downhill) will be more political instability.
7. But a side effect is that the China export machine starts to break down. That means less foreign currency, and that's really bad short & medium term for China.
One more thought: If I'm right, the 2020 Chinese New Year runs 01.21.2020 thru 02.20.2020.
What is going to be the transportation environment when everybody tries to go back to work?
Just a few thoughts.....