A top trade adviser to President-elect Donald Trump told Reuters on Thursday that the new administration would not look "fondly" on any attempt by China to manipulate its currency, responding to a Reuters report that authorities there were considering allowing the yuan to weaken next year.

China’s yuan slid the most in a week following a report that Beijing is considering allowing the currency to weaken next year in response to the threat of a trade war with the US.

Beijing is brandishing an expanded arsenal of countermeasures as President-elect Donald Trump threatens across-the-board tariffs on Chinese-made goods.

The move reflects China's recognition that it needs bigger economic stimulus to combat Trump's threats of punitive trade measures.

Here's a look at how the showdown between the world's two largest economies played out the last time Trump was in office and where things might be headed now.