EUR/CNY steady as China encourages German SME investment amid trade talks

EUR/CNY remains stable at 7.8450 as China's Vice Commerce Minister Ling Ji met with German business representatives in Beijing, promoting investment opportunities for small and medium-sized enterprises. The high-level meeting emphasized strengthening bilateral trade relations and maintaining stable global supply chains, a positive signal for EUR/CNY cross flows. China's proactive approach to attracting German investment comes amid ongoing concerns about global trade fragmentation and supply chain resilience. The meeting highlighted mutual benefits of cooperation, with Chinese officials expressing commitment to free trade principles. This diplomatic engagement could support euro demand from Chinese importers and potentially increase bilateral FDI flows. Near-term, EUR/CNY faces resistance at 7.8600 while finding support at 7.8300. The constructive dialogue suggests reduced trade tensions between China and Europe, potentially benefiting both currencies against the backdrop of global economic uncertainty.