Germany Calls for 'Plaza Accord' Talks on Yuan, Signaling Shift in China Policy
German Chancellor Friedrich Merz signalled a major shift in Berlin’s economic relations with Beijing on Friday, saying the Chinese currency was undervalued by 30 per cent, well above the International Monetary Fund’s estimate of “about 16 per cent”. Speaking in Brussels after a European Council summit, Merz said China was “flooding markets” through the use of “high subsidies”, adding that “subsidising overcapacities” along with a “currency that isn’t convertible freely … is n
German Chancellor Friedrich Merz has signaled a significant shift in Berlin's economic relationship with Beijing, stating that the Chinese yuan is undervalued by 30 percent, exceeding the IMF's estimate. Speaking after a European Council summit, Merz criticized China's 'high subsidies' and 'overcapacities,' coupled with a non-convertible currency, suggesting the need for 'Plaza Accord'-style talks. This stance indicates Germany's growing concern over China's trade practices and their impact on the global market.
This signals a potential hardening of the EU's stance on trade with China, impacting global economic relations and currency policies.
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