The People’s Bank of China said it has never used depreciation to gain a trade edge, as EU trade chief Maros Sefcovic visited Beijing over the surplus.
The People’s Bank of China said on Thursday that China has no need or intention to gain a trade advantage by weakening the yuan and has never pursued competitive depreciation, Reuters reported from Beijing. The statement answered criticism that the currency is kept weak to cheapen exports.
The comments came as European Union trade chief Maros Sefcovic was in Beijing to discuss narrowing the bloc’s trade deficit with China. Reuters said European leaders have pressed for a stronger yuan as China’s surplus has grown, citing concern about a fresh wave of Chinese exports.
The central bank said the market plays the decisive role in setting the exchange rate. It said it does not preset a target level, does not intervene in the long-term trend, and keeps two-way flexibility. It also said blaming a loss of industrial competitiveness, weaker fiscal discipline and structural problems on another country’s exchange rate was a way of avoiding adjustment at home.
Reuters cited EU data putting the bloc’s 2025 goods deficit with China at 360.6 billion euros, up 15 percent from the year before. Those figures are the EU series reported by Reuters, not a new Chinese release.
The bank’s statement does not announce a new yuan band, a rate change, or a concession tied to Sefcovic’s visit. Reuters did not quote a response from the EU trade chief in the same story.
People Sentiments Neutral
- The People’s Bank of China said attributing domestic competitiveness problems to other countries’ exchange rates was a way of avoiding adjustment.