China has denied it manipulates its currency for trade advantage but its surging trade surpluses are worrying leaders of the G7 nations
1-MIN READ1-MIN ListenReutersPublished: 2:13am, 23 Jun 2026European Central Bank President Christine Lagarde on Monday urged global leaders to discuss undervaluation of the Chinese currency as a facet of the imbalances endangering the global economy.
Europe has struggled to compete with China in sectors it used to dominate, such as high-end cars, partly due to Chinese goods being cheaper.
“That’s the situation as it is, which justifies completely the fact that there has been, and I hope there will be, further discussions of excessive imbalances, which include a currency aspect to it, between the G7 leaders and beyond,” Lagarde told an event in Brussels.
Lagarde dismissed the notion of a new Plaza Accord to strengthen the yuan, however, saying the 1985 international deal to weaken the dollar was struck when “times were different”.
