China Denies Yuan Manipulation Accusations as EU Trade Tensions Escalate

In a paper released Thursday, the People's Bank of China argued that a stronger yuan has not hindered China's trade growth and a weaker yuan has not spurred exports. The document directly addresses European allegations that Beijing keeps the renminbi undervalued by up to 30 percent and engages in overcapacity that harms European firms. The EU has warned of collective measures against Chinese companies, to which China pledged a resolute response. The dispute unfolds as both sides negotiate broader trade arrangements.