It does not happen because they are inefficient and have structural issues which got them in trouble and needing to deflate their currency to stay competitive in the first place. So any advantage gained by a competitive devaluation is often squandered...BUT, they do get a competitive advantage from it. Why do you think China buys so many T-bills? Its to keep the Yuan down so as to boost their exports.
—”Why do you think China buys so many T-bills? Its to keep the Yuan down so as to boost their exports.”
Not that I disagree, but to point out that China attempts to maintain a tight relationship with the dollar; by any means necessary.
The true(?) value of the yuan is a different matter.
That said, inflation and devaluation are not the same.