China Rejects European Pressure to Strengthen Yuan Amid Trade Surplus Dispute

Key Facts

1China defended its exchange-rate policy, stating it has never pursued competitive depreciation of the yuan.

2European policymakers are calling for a stronger yuan to help curb China's record trade surplus and export surge.

China defended its exchange-rate policy, stating it has never pursued competitive depreciation of the yuan. Reuters reported that Beijing officially rejected international criticism regarding its currency management, maintaining its stance despite rising diplomatic pressure.

European policymakers are calling for a stronger yuan to help curb China's record trade surplus and recent export surge. These tensions persist as the Eurozone reported an annual inflation rate of 3.8% on October 2, 2026, highlighting the broader economic friction between the two major economies.