Government and Policy

Wen urges Europe to put no pressure on RMB rate

(Xinhua)
Updated: 2010-10-06 23:02

BRUSSELS - Chinese Premier Wen Jiabao on Wednesday urged European political and business leaders not to join the "chorus" on pressuring China on the exchange rate of the Renminbi, or RMB.

China's trade surplus against the United States was due to the specific structures of the two economies instead of the exchange rate of the RMB, Wen said in a speech at the Sixth China-EU Business Summit.

European leaders should turn to the US dollar for an explanation of the fluctuations in the exchange rate of the euro, he said.

The world will by no means benefit from an appreciation of the RMB by 20 percent to 40 percent - as the US has demanded - because it will damage the Chinese economy, and the Chinese economy contributed about 50 percent of the global economic growth last year, he added.