BEIJING — China has no need or intention to use yuan depreciation for a trade competitive advantage and has never engaged in competitive currency devaluation, the central bank said, rejecting criticisms from western trading partners including the EU. The central bank remarks push back against claims that China keeps its currency undervalued to make its exports cheaper and imported goods pricier, and were issued as the EU's trade chief Maros Sefcovic was in Beijing to discuss narrowing the bloc's trade deficit with China. China's yuan has strengthened about 4 percent against the U.S. dollar so far this year, defying the drag from a widening yield gap between US and Chinese government bonds. In a June speech, European Central Bank President Christine Lagarde urged global leaders to discuss undervaluation of the Chinese currency as a facet of the imbalances endangering the global economy. The bloc is concerned about its trade imbalance with China, which reached €360.6 billion in 2025, according to EU data, up 15 percent from the previous year. China lets the market play a decisive role