China’s yuan has gained for six consecutive quarters, reaching its strongest level since 2023 as policymakers refrain from intervention despite potential export pressures. Simultaneously, AI hardware exports, including semiconductors and servers, have reshaped trade dynamics and fueled an import surge outpacing outbound shipments.
China’s tightly managed onshore yuan has recorded six straight quarterly gains, climbing to its strongest level since 2023. Policymakers have shown increased comfort with appreciation, prioritizing broader economic benefits over traditional export competitiveness concerns.
Rising global demand for semiconductors, servers and other AI hardware has created a lucrative export wave. These high-margin products have reduced the sensitivity of China’s trade performance to exchange-rate swings, easing pressure on traditional low-cost manufacturing sectors.
Inbound shipments, led by chip and semiconductor equipment imports, have grown faster than outbound flows—a pattern last seen in 2017. The stronger yuan has lowered import costs, further transforming China’s trade structure and aiding domestic technology investment.
