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Sino European force to avoid the battle of the exchange rate

the dark war of trading is heated up quietly European Union expresses that they will not legislate to oppress RMB appreciation, but is brewing trading new measure, with restriction the 3th partial state-owned enterprise field bid government buying projects of European Union. Sino-Europe may avoid a big battle of exchange rate, but the risk of bilateral economic and trade friction is going up quietly. In the trip of Europe on October 2 to 8, the Chinese Premier of the State Council Wen Jiabao appeal to European many times that do not participate in America to raise “oppress the cantata of RMB appreciation”. At the same time, he express the determination of Chinese reform exchange rate to form mechanism over and over again, and promise China will ensure fair investment climate. The European Union’s attitude is obvious different on RMB exchange rate and the economic and trade relation problem of Sino-European. Trading committee member De Guhe of European Union is confirming when accepting newspaper reporter exclusive interview that European Union will not pass through the bill that aims at the punishment Chinese policy of exchange rate on special 5th, but the trading policy file of European Union enacted at the end of October will start new trading relief measure in order to restrict the 3th state-owned enterprise field bid government buying project of European Union. De Guhe explains, what this trading relief measure is aimed at those countries that do not buy market to European Union equal open government,” and it is not special to aim at China “. China present is positively applying for joining World Trade Organization (WTO) purchase agreement between governments (GPA). Exchange rate: there is still have divergence Although De Guhe expresses European Union specially will not like America, exert pressure with legislative means RMB exchange rate, Sino-Europe still has certain divergence on the problem of exchange rate. On October 5, Wen Jiabao with euro district “3 carriages” (financial EU Commission with currency committee member of general affairs Olli Rehn, euro Chairman Junker, European Central Bank President Jean-Claude Trichet) consults specially for the problem of exchange rate. An official who participates in discussing this time reveals for newspaper reporter, European Union’ hope is RMB for a basket major 5% of upward revaluation of currency including euro. He says, European Union cares for “there are still time in crucial point – - when can see the effect of the Chinese reform of exchange rate”. After that meeting, Ryan had been hinted for media RMB for euro exchange rate is underestimated. He shows, if euro is in the current international adjustment of exchange rate bear disproportional burden continuously (
international trade
), the euro district impetus of economic resurgence may weaken. For this, Wen Jiabao replies at the Sino-European industrial and commercial summit meeting on 6th, European Union should not oppress RMB appreciation. Actually, “from 1994, RMB exchange rate forms machine made reform until now, RMB actual effective exchange rate has appreciated 55%, some major currencies are devaluation “. Wen Jiabao expresses then that China will carry out exchange rate firmly to form machine made reform, “form to be foundation with market supply and demand, a reference basket currency regulates and has the floating system of exchange rate of management, will strengthen the RMB elasticity of exchange rate step by step, the basic stability that maintains RMB exchange rate on reasonable balanced level.” During the time of Wen Jiabao visiting Europe, Sino-Europe reaches limited common recognition on the problem of exchange rate. On 6th, after the 13th leaders meeting of Sino-Europe (Sino-European summit), the joint news bulletin issued have not mentioned the problem of exchange rate. On the problem of exchange rate, America is always the daring vanguard who oppresses RMB appreciation, but European Union recently also begins to require RMB appreciation more and more in publicize occasion. Above-mentioned official reveals that European Union gets bigger pressure from America recently. from:
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