China's yuan strengthens to 2023 peak as AI investment boom drives export record, prompting Beijing's restraint

China's exports hit a record in April, with about half of export growth coming from semiconductors and computers, while traditional categories such as clothing and furniture were flat or shrinking.

The yuan is set for a sixth quarter of gains against the dollar — a streak not seen since 2013 — and has climbed to its strongest level since 2023.

Despite the yuan's strength and signs of a more fragile economy, Chinese policymakers have shown little urgency to intervene, a shift from past practice when currency appreciation of this magnitude would typically draw a forceful response from Beijing over concerns it could hurt exports and economic growth.