The magnificent seven: Reasons why revaluation of the Yuan will not work

A trade war may break out between U.S. and China, as the U.S. has repeatedly threatened to impose tariffs on imports from China unless the Chinese revalue the yuan by the estimated undervaluation of the currency. The threat of action is based on the proposition that undervaluation of the yuan is the source of and cure for the U.S. massive trade deficit with China. Arguments are presented against the cause and cure proposition. In particular, seven reasons are put forward to explain why revaluation of the yuan will not work, thus undermining the foundation of an impending trade war.