WEN CALLS RENMINBI PRESSURE ‘UNFAIR’
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China’s premier Wen Jiabao on Monday lashed out at the growing number of countries pressuring Beijing to strengthen its currency, making it clear that European officials made little headway in their efforts over the past two days to persuade the country to allow the renminbi to appreciate.
Speaking at the conclusion of an EU-China summit in the eastern Chinese city of Nanjing, Mr Wen said: “Some countries on the one hand want the renminbi to appreciate, but on the other hand engage in brazen trade protectionism against China. This is unfair. Their measures are a restriction on China’s development.”
The premier repeated the standard form of words Beijing uses to describe its currency policy. “We will maintain the stability of the renminbi at a reasonable and balanced level,” adding that “maintaining the basic stability of the renminbi exchange rate has benefited China’s economic development and benefited world economic recovery,” Mr Wen said.
Mr Wen’s candid tone contrasted with the conciliatory note struck by European leaders who addressed the same press briefing. They did not mention the renminbi after Monday’s talks, and abruptly cancelled a press briefing in which they would have faced uncomfortable questions about Mr Wen’s aggressive tone.
Speaking on Sunday, after senior eurozone officials met Premier Wen and other Chinese policymakers, European officials made clear they had made little headway with Beijing. Luxembourg’s prime minister Jean-Claude Juncker, who chairs eurozone finance minister meetings, said afterward: “I can’t say I am more optimistic than I was before I came here” about China’s plans to strengthen its currency.
Jose Manuel Barroso, European Commission president, who met Premier Wen for a private dinner on Sunday night, said afterward: “the Chinese reiterated their position on the matter. … They are telling us exactly what they told President Obama – exactly the same.”
Though he showed no inclination to yield to European pressure on the renminbi, Mr Wen said China was “solemn and serious” in its vow to cut the amount of carbon dioxide emitted per unit of economic output by 40-45 per cent by 2020 compared with levels in 2005.
But he stressed China’s position that developed countries must lead the way in climate talks that start next week in Copenhagen, and must provide finance and technology to developing countries like China, to help them tackle global warming.
“We welcome and appreciate that China has presented quantified national targets, this is an important step toward an agreement in Copenhagen, ” said Fredrik Reinfeldt, prime minister of Sweden, which holds the rotating EU presidency. But he added that this and other climate change offers are insufficient.
”The global efforts put on the table for mitigation are not enough. … More needs to be done,” he said.
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