EU To Put Pressure On China Over Currency

European Commission officials stated on Thursday that the EU will continue to pressurize China to revalue its currency, although Beijing is expected pay no attention to foreign pressure.

European Trade Commissioner Karel De Gucht said during a news briefing, "They are undervalued ... that is true". The remarks came a day after Wen Jiabao, the Chinese Premier, told the EU not to pressurize China over the value of yuan.

However, De Gucht said that he believes Beijing will not revalue its currency due to foreign pressure.

Amadeu Altafaj, a spokesperson for the European Commission, told during a briefing that the EU will continue to convey the message that the euro is under immense pressure due to global economic imbalances. "We will continue to say this very clearly to the Chinese but also to the Americans", said the spokesperson, while adding, "We think that there is a widespread consensus that China's currency is still significantly undervalued".

Mr. Altafaj said that European leaders conveyed their point of view clearly to the Chinese premier during his trip to Europe. He further stated, "We consider that the euro is bearing a disproportionate burden in the adjustment of global exchange rates".

Jiabao said on Wednesday that any swift shift in yuan's value can lead to social turmoil.

The US and the EU blame China of deliberately keeping the yuan weak to help its exports, affecting economic growth and jobs in the West.