Merz Visits China Just as Yuan Starts to Climb Versus Euro

As German Chancellor Friedrich Merz tours China with a host of his country’s business leaders, he may be heartened to see the Chinese yuan is at last starting to appreciate against the euro.

Even with gains versus the US dollar last year, China’s closely controlled currency slumped around 8% against the euro, its biggest decline since 2003, helping turbocharge a flood of Chinese exports into Europe. Berlin has accused Chinese companies of enjoying advantages over their German counterparts including a favorable exchange rate and state subsidies as the Asian nation’s trade surplus with Europe widened to a record last year.