US senators urge Treasury Secretary Bessent to pressure China on yuan appreciation

Two US senators are pressing Treasury Secretary Scott Bessent to rally G7 allies behind a coordinated campaign to push China into letting the yuan rise. The request taps into a long-running complaint about Beijing’s currency management, one that has survived multiple administrations without ever quite producing the result Washington wants.

What the senators want

The senators, whose identities have not been publicly disclosed, are urging Bessent to use the G7 as a multilateral pressure tool. The logic is straightforward: if major economies present a united front, China faces greater incentive to allow the renminbi to strengthen rather than keeping it artificially low to boost exports.

The bipartisan nature of the request is notable. Currency policy toward China is one of the few issues where lawmakers on both sides of the aisle have historically found common ground.

Bessent’s balancing act

Bessent has publicly described the US-China economic relationship as the most unbalanced in modern history. Yet despite that characterization, his Treasury Department has declined to formally label China a currency manipulator.

The most recent review, as of June 2025, stopped short of that designation. The distinction matters because the “currency manipulator” label triggers specific policy consequences and trade remedies.

Bessent has also noted that the yuan is actually stronger against the dollar right now, while appearing weaker against the euro. For European economies, the yuan’s relative weakness creates competitive headaches that mirror American complaints.

Why the G7 angle matters

The G7 route, at least in theory, changes the calculus. When the US acts alone, China can frame the dispute as bilateral trade rivalry. When the G7 acts collectively, it becomes harder to dismiss as American protectionism.

No response from Bessent or from G7 counterparts has surfaced yet regarding the senators’ request.

What this means for investors

If the yuan were to appreciate meaningfully, it would ripple through global forex markets. A stronger yuan would likely weaken the dollar’s relative position against Asian currencies. For companies with significant Chinese supply chain exposure, a stronger yuan means higher input costs.

The gap between calling the relationship “the most unbalanced in modern history” and declining to use the currency manipulator designation tells you everything about where policy currently stands. Traders should watch for any change in that posture, particularly ahead of the next Treasury foreign exchange report.

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