The PBOC says a key structural shift is a marked decline in Chinese trade’s
sensitivity to exchange-rate movements. Export upgrading toward mid‑to‑high‑end
and more diversified goods helped: high‑tech exports and imports grew 7.9%
annually over the past five years and rose 11.4% YoY in 2025, accounting for
nearly 60% of overall foreign‑trade growth. Exporters are now embedded in global
supply chains and can share currency costs with upstream and downstream partners
rather than acting as pure price takers. Use of FX hedging and RMB invoicing has
risen—about 30% of trade is settled in RMB and corporate FX hedge ratios are
roughly 30%—further reducing trade sensitivity to FX volatility; the PBOC says
these ratios could increase further.
