China rejects yuan devaluation claims as trade talks intensify

China's central bank on Thursday denied that the yuan is undervalued, pushing back against a main European argument as negotiations continue ahead of a possible trade war. "China has no need or intent to gain competitive advantages through currency devaluation, nor has it ever resorted to competitive devaluation," the People's Bank of China said in a policy paper released in both Chinese and English. The central bank said China's trade growth is driven by its growing industrial strength, not by a weak currency.