China has no need or intention to weaken yuan for trade edge, central bank says
BEIJING — China has no need or intention to use yuan depreciation for a trade competitive advantage and has never engaged in competitive currency devaluation, the central bank said, rejecting criticisms from western trading partners including the EU. The central bank remarks push back against claims that China keeps its currency undervalued to make its exports cheaper and imported goods pricier,…
Beijing — China does not intend to weaken its currency for competitive trade advantages, asserting the central bank on Wednesday, countering Western criticisms. The remarks aim to dispel misconceptions that China deliberately keeps its currency undervalued to make exports cheaper and imports pricier. The EU's trade chief, Maros Sefcovic, was in Beijing at the time to negotiate ways to narrow the trade deficit between the two economic behemoths.
The Chinese yuan has appreciated approximately 4 percent against the US dollar this year, defying downward pressure from the widening gap between US and Chinese government bond yields. European Central Bank President Christine Lagarde had previously called for global leaders to discuss China's currency as a potential imbalance in the global economy.
The European Union has been concerned about its trade deficit with China, which stood at €360.6 billion in 2025, representing a 15 percent increase from the previous year. According to China, market forces play a significant role in determining the value of the currency.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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