China thrives amid Trump trade war uncertainties at yuan reaches strongest since 2023

Beijing’s central bank moved the yuan to its most powerful position against the American dollar in more than three years, marking another step in the country’s effort to grow its currency’s global role while doubts about dollar holdings continue among investors.

The People’s Bank of China put the yuan’s daily reference point at 6.8487 per dollar on Thursday. This represents the best rate the Chinese currency has seen since April 2023. Just one day before, the rate had been set at 6.8562.

Market watchers believe the yuan will keep getting stronger in coming months. Some think it could climb as far as 6.65 against the dollar before this year ends. But this rise might cause problems for China’s huge export business.

The yuan’s climb comes as investors have mixed feelings about holding dollars. The American currency has faced strain lately because of worries about unclear policies in Washington, questions about Federal Reserve independence, and concerns about America’s money troubles over the long run.

The dollar index measured 97.97 on Wednesday. That’s a big drop from where it started the year at 119.61.

Humanoid robotics push set to extend China’s manufacturing dominance

Meanwhile, new research from Morgan Stanley suggests China’s early advantage in humanoid robots will help drive the next wave of its manufacturing power around the world. In January, it predicted China’s humanoid robot sales to reach 28,000 in 2026, as reported by Cryptopolitan.

Similar to how China spotted electric vehicles as a major growth area ten years ago, the country’s spending and head start in humanoid robotics will push its piece of worldwide manufacturing from 15% now to 16.5% by 2030.

Robotics has moved out of research labs and into the real world over the last few years. Chinese technology parks, factories, and universities are among those now using humanoid robots. Government buying is also starting to happen.

Just like with electric vehicles, China is building up abilities across the whole humanoid supply chain. This gives it an advantage over rivals, including the US, Japan and South Korea, which often depend on Chinese parts and components.

Chinese media reports almost every week on new progress in humanoid robotics. A red humanoid robot recently ran a half-marathon in 50 minutes and 26 seconds, roughly seven minutes quicker than the men’s world record. Stock prices for robotics companies jumped when that news came out.

Businesses shrug off tariff threats as trade patterns shift

On the trade front, Chinese businesses say they’ve grown more comfortable dealing with uncertainty. Yu Yangxian, a Chinese salesperson whose company ships electric lockers and vending machines to America, told The Guardian that President Donald Trump’s visit to Beijing this month doesn’t concern her much.

“As long as the United States continues to trade, it will have to do business with us,” said Yu, whose company uses a strategy of partially passing on added costs to U.S. consumers. “China’s supply chains and the product quality are strong.”

Her company got through a difficult 2025, when tariffs briefly hit triple digits, but kept most of its American customers. At the same time, the business found new buyers around the world.

China finished 2025 with a record trade surplus of $1.2 trillion, roughly the same size as the Dutch economy. The country pushed into new markets by offering lower prices than existing competitors.

Sales to the United States dropped 20%, but went up 25.8% to Africa, 7.4% to Latin America, 13.4% to Southeast Asia and 8.4% to the European Union.

Beijing used the world’s dependence on Chinese supply chains to push back against tariffs, putting controls on rare earth exports. These materials are needed for some semiconductor and defense products and are made almost exclusively by China.

“The rare earth thing really is just the ultimate trump card,” said Cameron Johnson, senior partner at supply chain consultancy Tidalwave Solutions.

If you want a calmer entry point into DeFi crypto without the usual hype, start with this free video.