China determined to ‘resolutely’ keep yuan stable amid US tariff pressure

The comment is Beijing’s first response following US President Donald Trump’s accusation that China is profiting from a weaker currency

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China’s top economic and financial officials host a press conference in Beijing on Thursday, where they reiterated their determination to preserve stability amid an intensifying trade war. Photo: AP

Published: 9:00pm, 6 Mar 2025Updated: 1:24am, 7 Mar 2025

China is determined to preserve the stability of the yuan amid an intensifying trade war with the United States, the country’s top financial officials told a press conference in Beijing on Thursday.

“We will resolutely prevent exchange rate overshooting and ensure that the yuan remains basically stable at a reasonable and balanced level,” said Pan Gongsheng, governor of the People’s Bank of China (PBOC).

The comment is Beijing’s first official response following US President Donald Trump’s accusation that countries such as China and Japan were gaining an advantage through currency depreciation.

“On exchange rates, our policy and stance remain consistent – we’ll uphold the decisive role of the market … while strengthening expectations management,” Pan told reporters on the sidelines of the “two sessions”, the annual meeting of China’s top legislative and advisory bodies.

The Chinese currency has come under mounting pressure recently due to a combination of factors, including the strength of the US dollar and the economic uncertainty unleashed by Trump’s decision to hike tariffs on Chinese goods by 20 per cent.

Trump has long believed that China was intentionally undervaluing the yuan, with Washington officially labelling Beijing as a currency manipulator during his first term in office.