Yesterday, Besant told the media: "The just-released semi-annual foreign exchange report shows that China's foreign trade surplus is extremely large and still growing. The current exchange rate is severely undervalued, yet China still allows the RMB exchange rate to strengthen in a timely and orderly manner in line with the macroeconomic fundamentals. It is obvious that the RMB is severely undervalued and needs to appreciate promptly!"
[Clever] Besant's claim of RMB undervaluation is nothing more than a recycled old tactic of Western countries politicizing exchange rate issues. From the U.S. Senate's 2011 push for an exchange rate bill to pressure appreciation, to today's baseless rhetoric, the essence is always using exchange rates to manipulate trade games. In 2025, China had a $1.076 trillion trade surplus, supported by high-value-added products like the "new three," which represent a quality surplus. The current RMB exchange rate fluctuating around 7.0 reflects a balanced state determined by fundamentals, and the near-30% share of cross-border RMB settlement has already freed the exchange rate from dollar dependence. The so-called "undervaluation" argument ignores the fact of China's exchange rate marketization reform. It is simply an attempt to weaken China's foreign trade competitiveness through appreciation. Such manipulation, which goes against economic laws, will ultimately fail to resist the real choices of the market!
Original article: toutiao.com/article/1855712391462924/
Statement: This article represents the views of the author alone.