European Central Bank President Christine Lagarde has called for global discussion on the perceived undervaluation of the Chinese yuan as part of broader economic imbalances, according to reports from Reuters.

Her remarks come amid renewed scrutiny in Europe of China’s currency policy and its impact on trade competitiveness.

A Chinese expert on June 23 rejected the claims, saying they reflect an attempt by the European Union to attribute its economic challenges to China. The expert said arguments regarding yuan undervaluation are unfounded and counterproductive.

Bloomberg reported that Lagarde’s comments followed questions referencing German Chancellor Friedrich Merz, who has urged international talks on exchange rates as part of efforts to address the EU’s widening trade deficit with China.

European officials and institutions have increasingly highlighted the yuan’s valuation in recent months. A February report by France’s Haut-Commissariat à la Stratégie et au Plan estimated the currency was undervalued by around 20% to 25% and said this had contributed to China’s export advantage.

Jian Junbo, director of the Centre for China-Europe Relations at Fudan University’s Institute of International Studies, said the renewed rhetoric reflects concerns in parts of Europe over weakening industrial competitiveness, Global Times added.

He added that exchange rates are determined by market mechanisms and are not policy tools that can be adjusted at will. Linking the yuan to trade imbalances, he said, is misguided.

China’s central bank has repeatedly rejected claims that the yuan is being deliberately managed for trade advantage.

The People’s Bank of China has said short-term currency movements are driven by market forces, while long-term trends reflect economic fundamentals. It added that China’s economic strength underpins currency stability.

Pan Gongsheng, governor of the People’s Bank of China, reiterated at the China Development Forum 2026 that China has no intention of using currency depreciation to gain trade advantages. He said the central bank would continue to let the market play a decisive role in exchange rate formation while maintaining flexibility and stability.