The U.S. Treasury is pressing China to allow the yuan to strengthen, arguing the currency is “substantially undervalued” and should move higher in line with market pressure and economic fundamentals.
The call came in Treasury’s semiannual report to Congress on exchange-rate policies, which covers the four quarters through June 2025.
The Treasury did not label any major trading partner a currency manipulator, but it singled out China for unusually low transparency around how it manages its exchange rate—and warned that poor disclosure won’t shield Beijing from a future designation if evidence shows it is blocking yuan appreciation.
The Treasury’s yardstick comes from the Trade Facilitation and Trade Enforcement Act of 2015, which lays out how the department evaluates whether a trading partner may be keeping its currency out of line….
US Urges Beijing to Stop Holding Down a ‘Substantially Undervalued’ Yuan
