Yuan's Swing: Europe's Headache and U.S. Balance

U.S. Treasury Secretary Scott Bessent has expressed concerns regarding China's currency valuation, indicating that the yuan's fluctuations pose a greater challenge for Europe than for the United States.

In recent comments, Bessent noted that the yuan has decreased against the euro, while it has strengthened against the dollar, a situation exacerbating Europe's trade deficit with China.

This currency shift is boosting Chinese exports to Europe, aggravating trade relations between Brussels and Beijing. Meanwhile, Bessent also commented on U.S. tariffs on Chinese imports, which he says have helped reduce America's trade deficit.

(With inputs from agencies.)