German Chancellor Friedrich Merz said in Brussels on Friday that the yuan is undervalued by 30 percent and criticised China for flooding markets with subsidies.
Merz spoke after a European Council summit in Brussels. He said the yuan was undervalued by 30 percent, above the International Monetary Fund estimate of about 16 percent. He added that subsidising overcapacities and a currency that is not freely convertible is not acceptable.
The chancellor pointed to the Plaza Accords as an example for addressing such issues. His remarks are among his most forceful on Beijing since becoming chancellor last year.
European leaders have voiced concern that cheaper Chinese shipments are widening the trade deficit and endangering local manufacturers.
