China’s Weak Currency Is Powering Its Export Surge, Sparking International Criticism

Renminbi’s Relative Decline

In recent months the Chinese renminbi has slipped against the major currencies of its trading partners, including the US dollar, the euro and the Japanese yen. This depreciation makes Chinese‑made goods and services markedly cheaper on the global market, giving exporters a competitive edge.

Boost to Export Volumes

The lower exchange rate is translating into higher demand for a wide range of products, from electronics and textiles to machinery and consumer goods. Analysts note that the currency advantage has helped China sustain robust export growth even as many other economies are grappling with sluggish trade activity.

Growing Concerns from Abroad

While Chinese manufacturers welcome the boost, several foreign governments and trade observers have voiced criticism. They argue that an artificially weak renminbi constitutes an unfair trade practice that distorts market competition and puts overseas producers at a disadvantage.

Policy Implications and Future Outlook

Chinese officials maintain that the currency’s movement reflects market forces and broader economic adjustments. However, they also acknowledge that sustained pressure from trading partners could prompt policy reviews aimed at stabilising the renminbi without undermining the country’s export‑driven growth model.