Why global AI investment boom is making China more comfortable with a stronger yuan

The rapid rise of China as a global Artificial Intelligence (AI) hardware powerhouse is reshaping the country’s economic strategy and changing Beijing’s long-standing approach toward its currency, with the yuan heading for its longest winning streak against the US dollar in over a decade, Bloomberg reported.

According to reports, the Chinese onshore yuan is on track for a sixth straight quarter of gains against the dollar, a streak not seen since 2013, even as policymakers show little urgency to slow the currency’s appreciation despite concerns over slowing growth and fragile domestic demand.