China has categorically ruled out devaluing its currency in a bid to boost exports, despite the growing threat of an all-out trade war with the US.
Speaking to an audience of global executives and policymakers, Premier Li Keqiang said that Beijing would not weaken the yuan to boost trade with the rest of the world, while at the same time urging the World Economic Forum to defend the basic principles of “multilateralism and free trade”.
His comments appear to address claims that China is using its currency as a tool in the trade war with the US and come after the Trump administration announced it would impose new tariffs on $200bn worth of Chinese goods.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The yuan, also known as the renminbi, has dropped sharply against the dollar as the trade fight has ramped up, losing about 9% of its value since April.
This has led US President Donald Trump to repeat accusations first made on his campaign trail that China is manipulating its currency to combat US tariffs, “raising concerns that the currency market could become the next front in the economic battle between the two countries”, says the BBC.
This was strongly denied by Li. But with the trade war between China and the United States intensifying, “Beijing has just taken one potential weapon off the table”, reports CNN Money.
The news channel says China, which buys far less from the United States than the other way round, is starting to run low on American products to target, “raising speculation about what other measures it could take to hit back”.
-
Cameron House Resort & Spa: a luxurious lakeside havenThe Week Recommends This stunning five-star resort on the shores of Loch Lomond is perfect for a special Scottish getaway
-
Albania’s AI government minister: a portent of things to come?In The Spotlight A bot called Diella has been tasked with tackling the country's notorious corruption problem
-
Hyatt Regency Lisbon: a tranquil oasis in the historic district of BelémThe Week Recommends With its sprawling spa and prime location overlooking the River Tagus, this luxury hotel is a great place to escape the bustle of the city
-
Russia slams Kyiv, hits government buildingSpeed Read This was Moscow's largest aerial assault since launching its full-scale invasion in 2022
-
China's Xi hosts Modi, Putin, Kim in challenge to USSpeed Read Chinese President Xi Jinping hosted Indian Prime Minister Narendra Modi, Russian President Vladimir Putin and other Asian leaders at an SCO summit
-
What is Tony Blair's plan for Gaza?Today's Big Question Former PM has reportedly been putting together a post-war strategy 'for the past several months'
-
China is silently expanding its influence in American citiesUnder the Radar New York City and San Francisco, among others, have reportedly been targeted
-
What will security guarantees for Ukraine look like?Today's Big Question From boots on the ground to economic sanctions, here are the measures that might stop Russia taking another bite out of Ukraine
-
Will Ukraine trade territory for peace?TODAY'S BIG QUESTION Kyiv’s defences are wearing thin but a land swap is constitutionally impossible and crosses Zelenskyy's red lines
-
Russia tries Ukraine land grab before Trump summitSpeed Read The incursion may be part of Putin's efforts to boost his bargaining position
-
US, China extend trade war truce for 90 daysSpeed Read The triple-digit tariff threat is postponed for another three months
