Does the yuan's devaluation affect China's international trade?

China's exchange rate policy to keep the national currency undervalued has been at the centre of interest during the last decade. Especially, developed countries like the US accuses China to keep the Yuan undervalued in order to enhance the competitiveness of its products in the international market. Countries debate this issue and even apply further restrictions reciprocally, known as the “trade war”. The aim of this article is to estimate the impact of changes in the Yuan's exchange rate over China's international trade overall, and especially with the US. For the period of 1991-2020, empirical findings present no significant evidence about the impact of Yuan's exchange rate changes on China's international trade. The impact is statistically insignificant in all cases. Instead, international trade indicators represent to have a strong correlation with its own one-year past value.


Karimova, G. (2021). Does the yuan's devaluation affect China's international trade?. ASERC Journal of Socio-Economic Studies, 4(2), 126-142. DOI:10.30546/2663-7251.2021.4.2.126