Europe says yuan is 'too cheap' while Chinese companies say 'we can't survive if it rises further'

Europe and the IMF argue that the yuan is significantly undervalued, while Chinese exporters say its recent rise, about 5% against the dollar and 9% against the euro this year, is squeezing profits and jobs. The People's Bank of China has raised the foreign-currency reserve requirement ratio to slow the yuan's appreciation.

Reuters data shows the median net profit margin of listed Chinese firms in the first half was 4.9%, well below the 8.9% of foreign competitors.