China Rejects Claims the Yuan Is Undervalued
China’s central bank rejected claims that the yuan is undervalued as trade talks began with the European Union, where officials have increasingly blamed trade imbalances on the exchange rate. The People’s Bank of China argued that exchange-rate adjustments won’t resolve structural imbalances in the global economy. Bloomberg's Oliver Crook reports. (Source: Bloomberg)
China's central bank has denied that the yuan is undervalued, amid trade talks with the European Union. The bank argued that adjusting exchange rates would not resolve structural imbalances in the global economy, according to Bloomberg.
The central bank published a paper stating that past experience did not suggest a stronger yuan hurt China's trade expansion, or that a weaker yuan boosted exports, Semafor reported. This was seen as a response to accusations of renminbi undervaluation.
The European Union has long charged China with deflating the yuan by as much as 30%, and pursuing a policy of industrial overcapacity that harms European industries, Semafor said. China has vowed a "resolute response" if the EU takes collective action to restrict Chinese companies or products.
Brief written by urgent.news from Bloomberg, Semafor — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- China Rejects Claims the Yuan Is Undervalued bloomberg.com
