{
  "id": 15309340,
  "title": "A stronger renminbi is not quick fix for global imbalances",
  "url": "https://urgent.news/2026/10/18/a-stronger-renminbi-is-not-quick-fix-for-global-imbalances",
  "topic": "world",
  "section": "World",
  "published": "2026-10-18T00:12:04.000Z",
  "source": {
    "name": "The Korea Times",
    "slug": "the-korea-times",
    "url": "https://www.koreatimes.co.kr/opinion/20261018/a-stronger-renminbi-is-not-quick-fix-for-global-imbalances"
  },
  "original_language": "en",
  "account": "BEIJING — In recent discussions about global macroeconomic imbalances, the Chinese renminbi has emerged as a focal point. China's merchandise trade surplus has reached an astonishing $1.2 trillion in 2025, and its manufacturing sector has grown in prominence. Many financial and economic commentators now agree that the renminbi is severely undervalued. The apparent solution, according to this near-unanimous view, is for China to allow its currency to appreciate sharply. This would reduce the surplus, lessen competitive pressure on manufacturers internationally, and contribute to rebalancing the global economy. The proposal is politically appealing, as it seems to offer a straightforward resolution to a complex problem. However, this solution is not without its flaws. To truly determine whether an exchange-rate appreciation would be beneficial for China, one must first understand the root cause of the currency's weakness. If the devaluation is primarily due to intentional actions to boost exports, then a sharp appreciation could indeed be a relatively clean and effective remedy. But if the devaluation is instead a result of weak domestic demand, then allowing the currency to appreciate without addressing the underlying weakness would not solve the problem, and could even exacerbate it.",
  "summary": "BEIJING — The renminbi is back at the center of debates about global macroeconomic imbalances. With China’s merchandise trade surplus widening to $1.2 trillion in 2025, and with its manufacturing sector becoming increasingly dominant, the near-consensus among financial and economic commentators is that the renminbi is significantly undervalued. The implication is that China should let its…",
  "key_points": [
    "China's merchandise trade surplus reached $1.2 trillion in 2025.",
    "Many experts believe Chinese renminbi is severely undervalued.",
    "Appreciation may not solve imbalances if domestic demand is weak."
  ],
  "editors_take": "Treating currency appreciation as a simple remedy for trade surpluses ignores whether China's economic imbalances stem from intentional export strategies or a fundamental lack of domestic consumer demand.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Korea Times",
        "title": "A stronger renminbi is not quick fix for global imbalances",
        "url": "https://urgent.news/2026/10/18/a-stronger-renminbi-is-not-quick-fix-for-global-imbalances-15313003",
        "published": "2026-10-18T00:32:05.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}