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 maintains it has no intention of using currency depreciation to gain a trade advantage, and has never participated in competitive currency devaluation, according to the central bank. The central bank's stance rejects Western trading partners, such as the EU, who have criticized China for keeping its currency undervalued to make exports cheaper and imports more expensive.
The remarks come as EU Trade Chief Maros Sefcovic visits Beijing to discuss closing the EU's trade deficit with China. China's currency has risen about 4% against the US dollar this year, despite the widening gap between US and Chinese government bond yields. In June, European Central Bank President Christine Lagarde had called for global leaders to address China's undervalued currency as part of global economic imbalances.
The EU is troubled by its €360.6 billion trade imbalance with China in 2025, an increase of 15% from the previous year. The Chinese central bank emphasizes the importance of market forces in determining exchange rates.
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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