China attributes export growth to industrial competitiveness

The People’s Bank of China (PBOC) has stated that the nation has “no need or intent” to weaken its currency to gain trade advantages. In a recent statement, the central bank attributed China's trade growth to industrial competitiveness rather than exchange rate manipulation, reaffirming that market forces play a decisive role in setting the renminbi's value.

This response follows international scrutiny regarding China's growing trade surplus, which reached a record $1.2 trillion in 2025 and remained on track to surpass that figure in the first nine months of 2026. Critics, including think tanks in the United Kingdom and the United States, have argued that a weak renminbi has directly contributed to China's export boom. Additionally, the U.S. Department of the Treasury has maintained China on its monitoring list, warning that interventions to resist currency appreciation could lead to a manipulator designation.

While China's manufacturing dominance has helped cushion its domestic economy, it faces increasing global resistance. The United States has implemented tariffs and export controls, while European nations express concern over the erosion of their own industrial bases. As multinational companies adopt “China plus one” strategies to build supply chain resilience, China faces the challenge of maintaining its global economic integration amidst rising demands for technology sharing and localized manufacturing from other nations.