CHINA does not need to use competitive devaluation of its currency to aid its exports, Geng Shuang, a spokesman of the Chinese Ministry of Foreign Affairs (MOFA) said yesterday.

“Exchange rate of China’s RMB is determined by the market. There are ups and downs. It’s a two-way float. China has no desire to boost its exports through competitive devaluation while the nation’s sound economic fundamentals are providing support to the currency,” said Geng at a regular briefing in Beijing yesterday when asked to comment on Washington’s remarks on the yuan, which said China was monitoring the currency’s weakness amid the escalating bilateral trade row.

Geng also said that threats and intimidation on trade would never work on China.

On July 20, the onshore RMB against the U.S. dollar fell below the 6.81 threshold, and the offshore RMB against the U.S. dollar also fell below the 6.83 threshold, both hitting recent lows.

China also urges the U.S. to remain calm and rational. Geng said that threats and intimidation will never work on Chinese people and they are confident of their ability to uphold their interests.

“The US is bent on provoking this trade war. China does not want a trade war, but we are not afraid of one,” he added.

In an interview with CNBC, U.S. President Donald Trump said he is out to hit China with tariffs on 500 billion US dollars’ worth of exports to the U.S. It would amount to a tax on virtually all of China’s exports to the U.S.

(CGTN)