AT THE recent EU summit, German Chancellor Friedrich Merz declared the Chinese renminbi to be undervalued by as much as 30 per cent and floated the idea of a new Plaza Accord — a co-ordinated effort to force up the value of the currency, just as Washington did to Japan in 1985.It is worth remembering how that story ended, because the history Merz is reaching for is not the cautionary tale he imagines it to be.

Friedrich Merz’s call for a new Plaza Accord ignores how Washington’s 1985 currency ambush destroyed Japan without fixing US deficits — China, a sovereign socialist state with 1.4 billion consumers, cannot be bullied the same way, writes CARLOS MARTINEZ

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