How China’s currency makes the EU's trade deficit worse – and what Brussels can do

The undervaluation of the yuan has been cited by EU leaders as a significant driver behind the bloc's record trade deficit with China, raising concerns about trade imbalances. This imbalance is prompting Brussels to consider measures to address the issue, as a larger trade deficit can impact economic stability and growth. The implications extend beyond trade, potentially affecting currency markets and influencing global economic policies, making this a matter of strategic importance for both the EU and China.