China Rejects Trade Criticism as Germany Pushes for Global Talks on the Yuan

China pushed back on Monday against mounting Western criticism of its trade practices, with Vice-Premier Ding Xuexiang declaring that "China never actively pursues a trade surplus," the South China Morning Post reported. The response followed German Chancellor Friedrich Merz becoming the latest leader to complain about surging trade imbalances.

Merz went further than most, calling for international talks on exchange rates and describing the yuan as undervalued by about 30 percent, well above the International Monetary Fund's estimate of roughly 16 percent and Goldman Sachs's figure of about 25 percent. He accused Beijing of oversupplying markets through subsidies and an unconvertible currency, and he referred to past coordinated currency agreements.

The dispute lands as Europe's internal politics shift. Pew polling shows Europeans hold more favorable views of the European Union than during the Brexit period, even as some eurosceptic parties poll strongly, giving Brussels political room to harden its line on China.