Germany aligns with EU on China trade, calls for yuan talks

Germany is aligning with the EU's stricter stance on China's economic practices, with Chancellor Friedrich Merz calling for international talks similar to the Plaza Accord to address the perceived undervaluation of the renminbi. Merz stated that the Chinese currency is undervalued by approximately 30%, significantly impacting European markets by making Chinese goods cheaper due to high subsidies and non-convertibility of the yuan. This move signals a tougher approach from Berlin towards Beijing, aiming to rectify trade imbalances and protect European manufacturers. AI

RANK_REASON Significant policy shift from a major EU economy regarding international trade and currency valuation. [lever_c_demoted from significant: ic=1 ai=0.1]

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• Beijing
• Brussels
• China
• EU
• euro
• European Commission
• European Council
• Friedrich Merz
• Germany
• International Monetary Fund
• Plaza Accord
• renminbi

• policy
• other

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