Won’t weaken currency, says Premier Li

China will not stoop to competitive devaluation of its currency, Premier Li Keqiang stressed, hours after China hit back, with a softer punch than the one landed by the United States, in an escalating tariff war between the world’s largest economies.

Addressing a World Economic Forum event in the port city of Tianjin on Wednesday, Li did not directly mention the trade conflict but he said talk of Beijing deliberately weakening its currency was “groundless.”

“One-way depreciation of the yuan brings more harm than benefits for China,” he said. “China will never go down the road of relying on yuan depreciation to stimulate exports.” China will not do that to chase “thin profits” and “a few small bucks”.

Li went on to say that the world’s multi-lateral trading system should be upheld, and that unilateral trade actions will not solve any problems.

His remarks gave a lift to the yuan, which has lost about 9 per cent of its value since mid-April amid the ongoing trade war.

On Tuesday, Beijing added $60 billion of the US products to its import tariff list in retaliation for the US President Donald Trump’s planned levies on $200 billion of Chinese goods. China has yet to publicly accept an invitation extended last week by US Treasury Secretary Steven Mnuchin to hold a fresh round of talks, which China welcomed at the time.

On Wednesday, Foreign Ministry spokesman Geng Shuang said he had no information on a possible trade delegation and questioned US sincerity about wanting new talks, noting that the last round was followed immediately by the activation of new tariffs.

“This has become a kind of US routine,” he said.

Li went on to say that the world’s multilateral trading system should be upheld, and that unilateral trade actions will not solve any problems