European Union: Portuguese PM defends valuation of Chinese currency against the Euro at the Europe-China summit

13 November 2007

Beijing, China, 13 Nov – The Portuguese prime minister is to propose to Beijing at the next European Union–China summit that the country value its currency against the Euro to reduce the EU’s growing trade deficit, the EU ambassador to China said in Beijing Monday.

ON November 28, José Sócrates is due to lead an EU delegation at the EU-China summit, which will focus on trade relations between Europe and the People’s Republic of China, particularly what Brussels considers to be Beijing’s policy of artificially devaluing its currency (renimbi), giving Chinese exporters an unfair advantage within the global market.

At a press conference to present the agenda for the summit, the EU ambassador to China, Serge Abou said that China’s monetary policy was a “global imbalance” alongside Chinese property rights violations, “the opening up of the Chinese market, which is not total yet,” and the “state subsidies and interventions to protect Chinese companies.”

The European delegation will therefore insist “on the need to allow the valuation of the actual exchange rate of the renminbi against the Euro.”

On the eve of the summit, high level officials responsible for European monetary policy, – Jean-Claude Trichet, chairman of the European Central Bank, Jean-Claude Juncker, chairman of the group of Euro Zone Finance Ministers and Joaquin Almunia, European commissioner for Economic and Monetary Affairs – will also travel to Beijing for discussions with the Chinese authorities on the exchange rate between the renminbi and the euro. (macauhub)