Beijing has been allowing the yuan to appreciate at a gradual pace, but European officials are pushing for a faster rate to address a growing trade imbalance. The core of the dispute lies in the speed of the yuan’s appreciation, not its direction. Top EU officials, including Maarten Verwey, plan coordinated visits to Beijing to advocate for a stronger yuan.
Verwey, the European Commission’s director general for economic and financial affairs, will lead a delegation in the week of November 23. A potential year-end joint mission could involve European Central Bank president Christine Lagarde, EU economy chief Valdis Dombrovskis, and Eurogroup president Kyriakos Pierrakakis. They aim to meet with People’s Bank of China governor Pan Gongsheng and Finance Minister Lan Foan.
The European officials argue that an artificially undervalued yuan is contributing to cheap imports that threaten European industries. However, Beijing has been managing the yuan’s appreciation cautiously, suggesting that Europe may need to exercise patience in its approach.