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?