US Urges Beijing to Stop Holding Down a ‘Substantially Undervalued’ Yuan

Treasury says the yuan is ‘substantially undervalued’ and warns limited transparency won’t avert a future designation if Beijing resists appreciation.

This photo illustration shows Chinese 100 yuan notes and US$100 notes, in Beijing on April 8, 2025. Jade Gao/AFP via Getty Images

The U.S. Treasury is pressing China to allow the yuan to strengthen, arguing the currency is “substantially undervalued” and should move higher in line with market pressure and economic fundamentals.

The call came in Treasury’s semiannual report to Congress on exchange-rate policies, which covers the four quarters through June 2025.