Brussels, 27/04/2010 (Agence Europe) - In Beijing, where he held talks with Chinese Trade Minister Chen Deming, European Trade Commissioner Karel De Gucht argued for the yuan to be revalued in the interests of both the EU and China. “Whatever method is used, you will reach the conclusion that the yuan has been undervalued. I have said that, in my opinion, it is our mutual interest that there should be appreciation of the yuan,” De Gucht told press, following his meeting with his Chinese host. He said that Deming did not accept that the yuan was under-valued and said that China would only review its exchange policy when it would be of benefit to its own economy. After an exceptional re-evaluation in July 2005, the yuan gradually increased in value until summer 2008, especially against the dollar. Since then, it has been linked to the dollar, following its movements, much to the regret of Europe. The EU and the USA continue to call for appreciation of the Chinese currency, taking the view that its under-valuation gives Chinese exports a competitive advantage. However, with the global financial and economic crisis having brought a slowing on Chinese exports, Beijing would appear to be putting the brake on any early appreciation of the yuan.
After a short visit to Tokyo, where he will take part in the 19th EU-Japan Summit, De Gucht will travel back to Beijing, where, on Thursday, he will take part, alongside European Commission President José Manuel Barroso and five Commission colleagues in a meeting devoted to bilateral EU-Chinese relations. (E.H./transl.rt)