China Says It Has No Intention to Weaken Yuan for Trade Advantage
The People's Bank of China says market forces determine the currency's exchange rate as Beijing faces scrutiny over its trade surplus and export policies.
BEIJING — China has no need or intention to weaken the yuan to gain a trade advantage, the People's Bank of China said Thursday, rejecting criticism that its currency policies could give Chinese exporters an unfair edge.
The central bank said China has never engaged in competitive currency devaluation and that market forces play a decisive role in determining the yuan's exchange rate, according to Reuters.
The comments come as China faces growing scrutiny from Western trading partners over its large trade surplus. The European Union's trade deficit with China reached 360.6 billion euros ($416 billion) in 2025, according to Reuters.
The yuan has strengthened by about 4% against the U.S. dollar so far this year, despite a widening interest-rate gap between China and the United States.
The People's Bank of China said it does not set a target level for the yuan and does not seek to manipulate the currency's long-term exchange-rate trend.
The central bank also criticized arguments that China's exchange-rate policy is responsible for declining industrial competitiveness in other economies, saying countries should address their own structural economic challenges.
The currency issue has become part of broader discussions between Beijing and its major trading partners over China's exports, market access and trade imbalances.
The PBOC also plans to provide additional foreign-exchange-related data to the International Monetary Fund starting in 2027, according to Reuters.
The latest statement underscores Beijing's effort to push back against accusations of currency manipulation while maintaining flexibility in its exchange-rate policy.