Chinese yuan Photo:VCG

Editor's Note:

Currently, China's economy is steadily advancing along the path of high-quality development, even as domestic and international circumstances become increasingly complex. Some Western media, due to misunderstanding or bias, have repeatedly questioned or even distorted China's economic development. Accordingly, the Global Times launches the "Q&A on China's Economy" column to publish opinion pieces to present facts and clarify perceptions.


Since the beginning of 2026, China's foreign trade has remained strong. Some Western narratives are regurgitating old themes, claiming that China's export growth is the result of "exchange rate manipulation" and arguing that China artificially suppresses its currency, renminbi (RMB), to make its products more price-competitive. While this claim is deceptive, it is completely disconnected from reality.

China operates a managed floating exchange rate system. For years, the RMB has remained generally stable at a reasonable and balanced level. If Chinese products were "selling well" simply because the RMB was "cheap," then China's continuously record-breaking export volumes would imply a persistently depreciating currency. How, then, could the exchange rate remain broadly stable? In fact, by the end of March this year, the RMB had appreciated by 1.3 percent, 3.7 percent, 3.2 percent, and 2.4 percent against the US dollar, euro, yen, and pound respectively. According to the above "theory," this should have weakened the price competitiveness of Chinese exports. Why, then, do exports continue to grow? If exchange rate manipulation could truly deliver long-term trade advantages, why have most countries that tried to boost exports through currency devaluation failed to achieve sustainable growth?

Economic globalization has long changed the way countries do business. In the past, nations relied largely on their own resources to produce and sell goods. Today is different: Countries specialize, collaborate, and exchange what they have. Those who can best leverage global resources hold the advantage. As a major trading nation, China follows this model by importing raw materials and components from around the world, processing and upgrading them domestically, and exporting finished products globally. This is not because China "has everything," but because it excels at integration and cooperation. To a significant extent, China's trade advantage is the result of coordinated global supply chains, with prices influenced by multiple global factors. Attempting to reshape this system simply by adjusting the RMB exchange rate is unrealistic.

China's comprehensive manufacturing system and supportive trade policies have become a stabilizing force in economic globalization. Over the years, "Made in China" has been a reliable foundation for stable global supply, playing a positive role in supply chain restructuring and helping importing countries mitigate external shocks. Whether consumer goods for final demand or intermediate goods and components that support industrial development, all parties are well supplied through imports from China. Importers do not need to worry about delays or shortages and can customize products to meet diverse needs. International buyers can complete one-stop procurement in China, significantly reducing costs and simplifying after-sales services. From the "new three" products to high-end equipment, the core competitiveness of Chinese exports no longer depends on prices, but technology, delivery capability and reliable quality.

International trade is a complex ecosystem, where expectations and trust play decisive roles. Take 2025 as an example. Major shifts in global trade patterns were not simply driven by exchange rates, but largely by the US imposing "reciprocal tariffs" on its trading partners. This reversed an 80-year trend of declining tariffs since World War II, pushing US tariff levels close to those seen during the Great Depression (1929-33). As the US market became less open, the cost and risk of exporting to the US increased significantly. Many countries turned to China, which upholds multilateralism, supports globalization, maintains a stable market environment, and continues reform and opening-up. Through tariff reductions, trade facilitation, expanded platforms, and stronger guarantees, China has shared the benefits of its vast market with global partners. Imports from China continue to grow across countries, and deepening cooperation in turn further strengthens global confidence in the Chinese market.

As for whether China engages in "exchange rate manipulation," there is already broad international consensus. In 2019, when the US Treasury attempted to label China a "currency manipulator," the International Monetary Fund (IMF) stated that the exchange rate of the RMB in 2018 is basically in line with the economic fundamentals and there is no obvious overestimation or underestimation. This directly refuted such accusations. In recent years, whenever China achieves notable economic progress, some attempt to dismiss it as "unfair competition." By that logic, would only weak export performance be considered "fair"? This paradox reflects the troubling rise of trade protectionism.

China's development has never relied on "shortcuts," but on the hard work of its people. On the new journey of the 15th Five-Year Plan (2026-30), China will continue to improve the market-based formation mechanism of the RMB exchange rate, pursue high-level opening-up, and share development opportunities with countries around the world. No attempt to discredit China will change the fact of its great contributions to the global economy.