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Bessent says China's yuan rate is bigger problem for Europe than US
Published by Global Banking and Finance Review
Posted on September 18, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 18, 2025
2 min readLast updated: January 21, 2026
China's yuan valuation poses a greater threat to Europe than the US, with rising exports to Europe affecting trade deficits and currency trends.
By David Lawder
(Reuters) -U.S. Treasury Secretary Scott Bessent said he views China's yuan valuation as a bigger problem for Europe than the United States, as the currency has risen against the dollar but has declined against the euro.
Bessent said in an interview with Reuters and Bloomberg in Madrid, following U.S.-China talks on trade and TikTok there this week, that U.S. tariffs on Chinese imports were bringing down U.S. trade deficits, adding that Chinese trade with the U.S. was down 14% this year but up 6.9% with Europe.
Asked whether he spoke to Chinese Vice Premier He Lifeng about opportunistic devaluation of the yuan, Bessent said on Monday, "Well, they haven't done it to the U.S. The RMB is actually stronger this year versus the dollar. Now it's at an all-time low versus the euro, which is a problem for the Europeans."
The yuan, also known as the renminbi or RMB, has hit record lows of more than 8.4 to the euro in recent months compared to 7.5 at the start of 2025. Trade and currency experts say this is aiding a flood of Chinese exports to Europe that is fueling the European Union's trade deficit with China and agitating trade tensions between Brussels and Beijing.
At the same time, the yuan has risen slightly against the dollar this year, from 7.3 to the dollar in January to 7.1.
Asked whether the yuan's decline was due to manipulation, Bessent said: "It's a closed currency. So they manage the level."
(Reporting by David Lawder; Editing by Richard Chang)
The yuan, also known as the renminbi (RMB), is the official currency of China, used in domestic and international transactions.
Currency manipulation refers to a country's actions to artificially influence the value of its currency to gain an unfair advantage in international trade.
A trade deficit occurs when a country's imports exceed its exports, leading to a negative balance of trade.
Foreign exchange, or forex, is the market where currencies are traded, allowing for the conversion of one currency into another.
Economic growth is the increase in the production of goods and services in an economy over a period of time, often measured by GDP.
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