Economists and investors in China and beyond are calling on Beijing to allow a sharper appreciation of the renminbi, arguing that the currency is significantly undervalued and is being used to fuel an unprecedented trade surplus.
Over the past year, the People’s Bank of China, which manages the renminbi’s exchange rate, has allowed a gradual appreciation of the currency against the dollar. At the end of 2025 it crossed the level of Rmb7 to the dollar for the first time since 2023 and is now trading at about Rmb6.99.
But with the dollar’s rapid fall last year against currencies such as the euro, this has meant Chinese exports to Europe have become substantially more competitive, stoking trade tensions and prompting calls for Beijing to increase the rate of appreciation.