China's Central Bank Defends Yuan Policy Ahead of EU Trade Talks

Source Summary

China's central bank rejected accusations that the yuan is undervalued, stating that exchange-rate adjustments alone cannot address the underlying structural causes of global economic imbalances. The statement comes ahead of scheduled trade discussions between China and the European Union.

Why it matters

Currency valuation disputes are a central point of contention in China-EU trade relations, and the central bank's pre-negotiation stance signals Beijing's position on a key issue likely to be discussed in the talks.