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China Denies Currency Manipulation, Cites Dialogue to Resolve EU Trade Disputes
🇵🇾 Paraguay /Economy & Trade

China Denies Currency Manipulation, Cites Dialogue to Resolve EU Trade Disputes

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

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  • China rejected criticism from German Chancellor Merz and French President Macron regarding trade imbalances and currency manipulation.
  • Beijing stated it does not deliberately seek a trade surplus with Europe or offer prohibited subsidies, attributing its industrial competitiveness to its production system and market size.
  • China affirmed it never manipulates its currency and does not use exchange rates to respond to trade disputes, emphasizing dialogue to resolve EU economic differences.

China has firmly rejected accusations from German Chancellor Friedrich Merz and French President Emmanuel Macron concerning trade imbalances and alleged currency manipulation. Beijing asserts that its economic and trade differences with the European Union can be resolved through dialogue and consultation, rather than becoming an obstacle to mutual trust or a reason for "decoupling."

China does not pursue a trade surplus with Europe deliberately.

— Lin JianThe Chinese Foreign Ministry spokesperson addressed concerns about trade imbalances with the EU.

Chinese Foreign Ministry spokesperson Lin Jian stated that China does not pursue a trade surplus with Europe deliberately. He attributed the bilateral trade structure to the international division of labor, comparative advantages, and other factors. Lin also denied that China offers prohibited subsidies under World Trade Organization (WTO) rules, attributing the nation's industrial competitiveness to its robust production system, large market, innovation ecosystem, and sustained corporate investment.

Regarding currency concerns, Lin emphasized that China, as a responsible global power, has never manipulated its currency. He denied engaging in competitive devaluations or using exchange rates as a tool to address trade disputes or external disruptions. This response comes as a delegation of European Parliament members visits Beijing to discuss points of friction between China and Brussels, including trade imbalances, the war in Ukraine, and technological dependence.

China never manipulates its currency, does not practice competitive devaluations, nor does it use the exchange rate as a tool to respond to trade disputes or external disturbances.

— Lin JianThe spokesperson refuted claims of currency manipulation by China.

Merz and Macron had previously highlighted that no EU country maintains a positive trade balance with China, with the EU's annual deficit exceeding 300 billion euros. Macron specifically called for correcting "dysfunctions in currency exchange and monetary relations" with China and advocated for Europe to gain technological transfers rather than merely importing Chinese products. China's rebuttal underscores its position that its trade practices are fair and compliant with international norms.

Europe must correct the dysfunctions in currency exchange and monetary relations with China.

— Emmanuel MacronThe French president called for adjustments in the monetary relationship between Europe and China.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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