On the eve of the EU-China summit, Eurozone policymakers have stepped up pressure on China today for them to allow the value of Chinese currency – the yuan – to rise significantly.
Talks with Chinese prime minister Wen Jiabao centred on the problem of the price of Chinese goods being artificially pegged.
Since June, the euro has risen by more than 9.4% against the Chinese currency, prompting fears that this could stifle European growth.
Said Jean-Claude Juncker, the Eurogroup President: “We do think that the success of European recovery is in the best interests of China. We expressed our concerns as regards recent declarations about the speculations concerning the possibility of a currency war. This would be destructive as would be any form of trade protectionism.”
The question of the Chinese currency dominated the EU-Asia summit ASEM 8 today, pushing subjects like human rights, climate change and responsibility for the economic crisis way down the agenda.