# Opinion | Why a stronger yuan is still in China’s best interests | South China Morning Post

> An opinion piece argues that a stronger yuan serves China's interests because it gives the central bank more freedom to set monetary policy without imported inflation. It notes that foreign direct investment into China rose 4% in 2020 while global FDI collapsed. The article says China relies on dollar-priced food, energy and raw materials.

- Date: 2021-02-09 · published 2021-02-09T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/48873-opinion-why-a-stronger-yuan-is-still-in-china-s-best-interests-south-china
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A stronger yuan reduces the cost of dollar-priced feed and raw material imports into China. Continued yuan strength would support Chinese import demand for feed ingredients.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2025-11-26 | [China sets strongest yuan fix in over a year as Fed-cut bets rise \| South China Morning Post](https://feedsoft.ai/events/22172-china-sets-strongest-yuan-fix-in-over-a-year-as-fed-cut-bets-rise-south-china.md) | -0.3% | -1.0% |
| USDCNY | 2019-07-31 | [Opinion \| Why China may be ready for a strong yuan, and the US could follow up with a weak dollar policy \| South China Morning Post](https://feedsoft.ai/events/58328-opinion-why-china-may-be-ready-for-a-strong-yuan-and-the-us-could-follow-up.md) | +2.0% | +4.0% |
| USDCNY | 2016-06-20 | [Chinese yuan strengthens ahead of Brexit vote \| South China Morning Post](https://feedsoft.ai/events/10880-chinese-yuan-strengthens-ahead-of-brexit-vote-south-china-morning-post.md) | +0.5% | +1.8% |
| USDCNY | 2020-08-28 | [Why the yuan could soon shake off its sluggishness against the US dollar \| South China Morning Post](https://feedsoft.ai/events/51839-why-the-yuan-could-soon-shake-off-its-sluggishness-against-the-us-dollar-south.md) | -0.7% | -1.0% |
| USDCNY | 2024-08-05 | [As stock sell-off sweeps Asia, China’s yuan surges as US rate cuts loom \| South China Morning Post](https://feedsoft.ai/events/7430-as-stock-sell-off-sweeps-asia-china-s-yuan-surges-as-us-rate-cuts-loom-south.md) | +0.1% | -1.0% |

## Sources

- scmp.com: https://www.scmp.com/comment/opinion/article/3121020/why-stronger-yuan-still-chinas-best-interests

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.