Yuan Hits Strongest Level Since Apr 2023 as China Boosts Robotics

The People’s Bank of China set the yuan’s daily reference rate at 6.8487 per dollar on Thursday, the currency’s strongest level since April 2023. The central bank’s midpoint was 6.8562 the prior day.

Traders interpreted the change as support for a firmer yuan. Some market participants project further appreciation, with a range of forecasts placing the currency near 6.65 to the dollar by year-end. The dollar index was about 97.97 on Wednesday, down from roughly 119.61 at the start of the year.

China posted a record trade surplus of about $1.2 trillion in 2025. Exports to the United States fell about 20% year-on-year, while shipments expanded to other regions: Africa increased roughly 25.8%, Latin America 7.4%, Southeast Asia 13.4% and the European Union 8.4%.

Exporters say they have adjusted pricing and customer mixes to cope with higher tariffs and policy shifts. Yu Yangxian, a salesperson whose company ships electric lockers and vending machines to the U.S., noted the firm passed some added costs to American buyers and relied on established supply chains and product quality to retain clients during a year when tariffs briefly rose into triple digits.

Chinese authorities have tightened controls on rare-earth exports. Rare-earth elements are used in certain semiconductors and defense applications, and China is the dominant producer. Cameron Johnson, a senior partner at supply-chain consultancy Tidalwave Solutions, described rare-earth export controls as “the ultimate trump card” in trade negotiations.

State and private investment in robotics is expanding across factories, technology parks and universities. Analysis from Morgan Stanley projects Chinese humanoid robot sales could reach about 28,000 units in 2026 and estimates robotics adoption could raise China’s share of global manufacturing from roughly 15% today to about 16.5% by 2030. Government procurement is beginning to support broader commercial deployments.

Chinese companies and research centers are developing more of the robotics supply chain domestically, reducing reliance on foreign components. Industry reports have highlighted rapid technical advances; one example cited a red humanoid robot completing a half-marathon in 50 minutes and 26 seconds, an event that drew investor interest and affected robotics-related stock prices.

A stronger yuan changes the price dynamics for imports and exports. Policymakers and businesses face decisions about currency policy, market access and industrial investment while these trade and technological trends evolve.