China’s central bank rejects claims it keeps the yuan weak for trade

China’s central bank has rejected claims that the country keeps the yuan weak to help its exporters.

It said China has neither the need nor the intention to devalue its currency for a competitive advantage.

The statement came as China and the European Union began a new round of trade talks.

European officials say a weak yuan benefits Chinese exporters and contributes to the EU’s growing trade deficit with China.

The central bank argued that China’s export strength comes from rising industrial competitiveness, not its exchange-rate policy.

It also said currency adjustments cannot resolve the deeper structural causes of global economic imbalances.

Analysts cited in the coverage expect no major change in China’s currency policy, though one said the statement could signal greater resistance to further yuan gains.

One analyst described it as a position-setting document ahead of negotiations, rather than a change to the currency regime.