Will Macy's get caught up in a currency war?

At a time when the Chinese currency is being devalued and Macy’s financial results are disappointing investors, the company is forming an exclusive partnership with Alibaba.

Macy’s says it will be the first U.S. department store to join Chinese e-commerce firm Alibaba’s Tmall Global.Macy’s plans to launch a flagship store on Tmall Global in late 2015. Tmall Global will be the first and only third-party e-commerce platform in China providing apparel, fashion accessories and home products directly from Macy’s to consumers across China.

“Macy’s is one of the most iconic brands in the world and we are honored Macy’s China Limited has chosen us as their exclusive partner to grow their business in China,” said Daniel Zhang, chief executive officer of Alibaba Group. “Macy’s exclusive Tmall Global flagship store is a major win for consumers across China. It reinforces Tmall Global’s status as the premiere solution for brands and retailers in their strategic online presence and direct engagement with customers in China.”

Macy's says it doesn't plan to open any brick-and-mortar stores in China, but instead is going after the burgeoning e-commerce market there. Chinese e-commerce sales in China are expected to reach $50 million by 2016.

"Our game plan is to start small and use the test-and-learn approach as we move forward," Macy's chief financial officer Karen Hoguet said in a call with investors. "We also believe by increasing the presence of Macy’s in China, we will increase our business here as well, both with the Chinese tourists and Chinese residents.”

But the China market is not a sure thing, especially now. China has been devaluing its currency this week, prompting concerns about a weakening economy there and sparking fears ofa global and destabilizing "currency war," which has sent U.S. stocks tumbling.

Macy's first began e-commerce in China in 2011, selling an edited assortment of merchandise on macys.com and shipping from the U.S.