The value of the yuan has become a flashpoint in trade relations between China and the European Union. Many EU policymakers and economists believe the currency is undervalued and a key driver of the bloc’s deepening trade deficit with the East Asian nation. That imbalance averaged about $1.
Source: [Bloomberg Markets](https://www.bloomberg.com/news/articles/2026-07-22/eur-cny-why-china-s-yuan-is-drawing-scrutiny-in-europe-what-it-means-for-euro)