Wen Jiabao Asked EU To Reduce Attack On RMB

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Speaking in a speech to senior EU officials and businessmen, Wen Jiabao said that if the RMB exchange rate is unstable, it will bring disaster to China and the world.

EU officials and business circles recently joined the US camp and openly asked Beijing to let the renminbi appreciate.

Until June this year, the RMB exchange rate has been pegged to the US dollar.

Although China has allowed the RMB exchange rate to fluctuate in a narrow range since then, the appreciation of the renminbi is far from enough for the countries whose exports to China have dropped sharply and there is a huge trade deficit with China.

A country's currency devaluation will reduce the overseas price of its products, thus contributing to the export of the country.

To Europe's frustration, though the renminbi has appreciated by about 2% against the US dollar since June this year, it has depreciated by 10% against the euro.

German Chancellor Merkel (Angela Merkel) told reporters on Tuesday that exchange rates should be as realistic as possible.

Olli Rehn, the EU's Monetary Affairs Commissioner, admitted that China had allowed the renminbi to fluctuate, but he said it needed to increase the flexibility of the RMB exchange rate.

On the issue of RMB, Wen Jiabao only repeats the consistent view of he and other senior Chinese officials since June this year. He only promised to let the renminbi "

Bloom Bloom, global head of HSBC's currency trading business, said it is now the world's other countries raising the price tag, David.

He also said that a series of international conferences to be held soon after the mid-term elections in the United States and a new agreement were being made, and the slow growth of the economy, which brought together the market panic and put pressure on political leaders.

Wen Jiabao said in his speech that allowing the RMB exchange rate to float freely will also make China pay a high price.

He said that if the RMB exchange rate appreciates 20%-40% according to some people's requirements, China's export enterprises will fail a lot, and the society will be hard to stabilize.

Tensions between the parties due to exchange rate problems have cast a shadow over the ASEM meeting of 46 countries and the summit of EU and China and euro and South Korea.

Most of the districts in central Brussels have implemented traffic control because of these meetings this week.

EU leaders urged China to respect intellectual property rights and open government public projects to European companies.

China's main requirement at the summit is that they accept market economy status. Recognition of this will make it more difficult for the EU to impose special tariffs on cheap Chinese imports.

The EU has recently used some of these tariffs to crack down on China, including aluminum wheels, steel and footwear products.

Merkel promised to assist the market economy status.

However, many EU officials insist that China is not yet a real market economy and has yet to qualify for such a position.

Wen Jiabao's speech on exchange rate was delivered to hundreds of executives attending the simultaneous business summit.

Europeans are hoping to increase their exposure to the huge Chinese market.

Hansen, President of Novozymes A/S, a biotechnology company in Denmark, said that participation in these meetings is very important because the Chinese will take the list of participants back and carefully study the names of each company. Lars Hansen

Novozymes A/S hopes to sell more products of biofuel production to China.

Chinese executives come to Brussels to seek to enhance their image in a growing environment of protectionism.

Li Shufu, chairman of Zhejiang Geely Holding Group Company Limited's board of directors, said that Europe is still the key to global economic development. We must learn to understand each other and respect each other.

The automaker bought the Volvo Cars in March from Ford Motor Co., Ford (Co.).

The business community also welcomed the signing of the EU and South Korea free trade agreement, which has been brewing for three years, linking the world's largest economy with the fifteenth largest economy. It is regarded as the largest bilateral agreement in history. Only the agreement between the United States and Australia, China and Australia can match it.

South Korea's auto and high-tech companies will be able to face the 500 million consumer of the European Union, while European companies will have a foothold in the once closed but prosperous Korean market.

For example, according to statistics from European Spirits Organization, Korea Companies accounts for 97% of the European spirits market.

The free trade agreement will abolish import tariffs of US $about 2000000000.

Fortesk, director general of European spirits Organization (Jamie Fortescue), said that the agreement also established basic intellectual property rules to combat counterfeit wine and protect geographical indications.

Fortesk said it is even more gratifying to note that the provisions of the agreement on alcoholic products will become a benchmark for other trade agreements, such as an agreement currently being discussed with India by the European Union.