China’s central bank rejects claims yuan is undervalued amid trade war talks

China’s central bank has rejected claims that the yuan is undervalued, rebutting a key European argument amid crunch negotiations ahead of a possible trade war. The People’s Bank of China set out its position in a policy paper on Thursday, with the document printed in both Chinese and English.

The bank said that “China has no need or intent to gain competitive advantages through currency devaluation, nor has it ever resorted to competitive devaluation.” The statement addresses the claim that China uses the yuan to secure competitive advantages, while firmly denying that position. The paper’s publication places the central bank’s response directly within the wider negotiations, where currency concerns have become a key European argument.

Source: South China Morning Post