【By Observer Net, Qi Qian】

On September 18 local time, U.S. Treasury Secretary Bensont expressed his approval of the exchange rate of the Chinese yuan to the U.S. dollar. He also said that he believes the yuan's exchange rate is a bigger issue for Europe, because the yuan has risen against the U.S. dollar but fallen against the euro.

According to reports, Bensont made the above statements during an interview with Bloomberg and Reuters in Madrid, Spain.

Bensont spoke about the yuan exchange rate, saying: "They are not targeting the U.S. This year, the yuan has actually strengthened against the U.S. dollar."

He added that the yuan against the euro is at a historical low, "which is a problem for Europeans".

Data compiled by Bloomberg shows that this year, the yuan has risen about 3% against the U.S. dollar. During the same period, the euro surged nearly 14% against the U.S. dollar. Because the yuan has appreciated less against the dollar, it has depreciated against other major currencies, falling about 10% against the euro.

Reuters mentioned that in recent months, the yuan to euro exchange rate has hit a historical low of over 8.4, and the figure was 7.5 in early 2025. Trade and currency experts say that this helps China's large exports to Europe, thereby increasing the EU's trade deficit with China.

Photo of U.S. Treasury Secretary Bensont on social media

In April this year, the State Council Information Office released the white paper "The Chinese Position on Some Issues Regarding Sino-U.S. Economic and Trade Relations" on the 9th.

The white paper mentioned that the RMB exchange rate has remained basically stable at a reasonable and balanced level, and China's international balance of payments has become more balanced. Since 2020, the China Foreign Exchange Trading Center RMB exchange rate index, which measures the RMB exchange rate against a basket of currencies, has generally fluctuated around 100, maintaining relative strength among major international currencies, and there is no competitive devaluation.

According to the People's Bank of China authorized by the China Foreign Exchange Trading Center, on September 19, the central parity rate of the RMB exchange rate in the inter-bank foreign exchange market was 1 U.S. dollar to 7.1128 RMB, and 1 euro to 8.3834 RMB.

Regarding the Sino-U.S. trade issues, Bensont continued to defend the tariff policy of the President of the United States.

Bensont said he believes the U.S. Supreme Court will support the Trump administration's use of emergency powers to tax countries. He claimed that these tariff revenues help stabilize U.S. debt, and are "additional" income. He also boasted that the Trump administration could reduce the U.S. fiscal deficit as a percentage of GDP to a level starting with "3" when Trump leaves office.

Bensont claimed that due to tariffs, Sino-U.S. trade is moving towards balance, "this year, our trade deficit with China may fall by 30%".

According to data from the U.S. Treasury last October, the U.S. federal government's fiscal deficit reached $1.833 trillion for the 2024 fiscal year ending on September 30, with the deficit-to-GDP ratio exceeding 6% for the second consecutive year, at 6.4%.

According to the Ministry of Commerce website, on September 14-15 local time, the Sino-U.S. economic and trade teams held talks in Madrid, Spain.

Li Chenggang, representative of the Ministry of Commerce of China for international trade negotiations and vice minister, said after the talks that during the past two days, both sides actively implemented the important consensus of the phone call between the two heads of state, gave full play to the role of the Sino-U.S. economic and trade consultation mechanism, and had sincere, in-depth and constructive communication on the economic and trade issues of mutual concern such as TikTok, based on mutual respect and equal negotiation.

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