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German Chancellor Friedrich Merz called for urgent international talks on exchange rates, aiming to address the European Union's trade deficit with China, especially concerning the valuation of the Chinese yuan, which is believed to be undervalued by up to 30%. He emphasized the need for policy coordination among major nations to restore market balance, amid concerns over China's support for its surplus production and its reliance on a non-convertible currency, which threaten global financial stability and pose additional challenges for Europe in balancing dependence on Chinese raw materials without igniting a full-scale trade war.
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