EUR/CNY: Why China’s Yuan Is Drawing Scrutiny in Europe, What It Means for Euro
Bloomberg 2026-07-22 00:09:07
Context: The European Union has turned its attention to China's yuan, with many policymakers and economists arguing that the currency is undervalued and significantly contributing to the bloc's growing trade deficit with China. This issue has become a focal point in trade relations between the two economic powers. The trade imbalance between the EU and China has been substantial, with a daily deficit averaging $1.1 billion in June.
Key Facts
- The European Union's trade deficit with China averaged approximately $1.1 billion per day in June, highlighting the significant imbalance in their trade relations.
- Many EU policymakers and economists believe that China's yuan is undervalued, which they see as a key driver of the bloc's deepening trade deficit with China.
- The value of the yuan has become a contentious issue in trade relations between China and the European Union, drawing scrutiny from EU policymakers and economists.