German Chancellor: RMB Undervalued by 25% Long-Term, EU Needs Dialogue with China

(CNA, Taipei, 14th) Amid rising trade tensions between the European Union and China, German Chancellor Friedrich Merz stated on the 13th during a university campus speech that the value of the Chinese yuan has been long-term undervalued by 25%, and stressed that the EU needs to initiate political-level exchange rate dialogue with China.

According to Bloomberg, Merz spoke at the University of Cologne on the 13th, addressing students and responding to questions about EU-China trade relations.

Merz pointed out that Europe has long underestimated China's global political and economic role. He noted that countries have begun intensive discussions on this issue within the EU Council and emphasized that the EU must engage in political exchange rate dialogue with China.

He stated that Europe faces a "very big problem" in determining its policy direction toward China and stressed that Europe needs to "reduce its dependence on China in this regard."

The report indicates that EU leaders are strengthening their response to the trade deficit with China. Merz has repeatedly identified the yuan's exchange rate as one of the sources of China's trade advantage over Europe. In June, he had already called for international dialogue on the issue of the yuan's undervaluation. (Editors: Chiu Kuo-chiang / Chen Kai-yu) 1150714

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