China’s Yuan Draws European Scrutiny as Currency Gap Pressures the Euro

Brussels, 22 July 2026 – China’s managed currency regime is attracting growing scrutiny across Europe as policymakers argue that an undervalued yuan is strengthening Chinese export competitiveness while placing additional pressure on European manufacturers and the euro.

The debate has intensified as Europe’s trade deficit with China reaches historically elevated levels and Chinese products gain market share across automobiles, machinery, clean technology and consumer goods.