German Chancellor Friedrich Merz has advocated for international discussions, potentially modeled after the 1985 Plaza Accord, to address concerns regarding the value of the Chinese yuan. Merz stated the yuan is undervalued by approximately 30 percent, exceeding IMF estimates. He accused China of utilizing substantial subsidies to flood global markets, creating overcapacity in various sectors. These statements were made following a European Council summit in Brussels, signaling a firmer stance from Berlin on its economic relationship with Beijing. Merz specifically criticized non-convertibility of the currency alongside the subsidy practices. This move indicates increased alignment between Germany and other EU nations regarding economic pressure on China. The call for talks suggests a desire for a coordinated international response to perceived unfair trade practices.