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Last Updated: Sunday, 26 June, 2005, 04:16 GMT 05:16 UK
China says no to yuan revaluation
By Rupert Wingfield-Hayes
BBC News, Beijing

Man holding yuan notes
China's expanding economy is causing concern in the west
China's Prime Minister Wen Jiabao has said there is no hurry to revalue the country's currency, the yuan.

Speaking to a meeting of European and Asian finance ministers in China on Sunday, Mr Wen said a stable yuan is in the interests of China and the world.

He told European finance chiefs a stable yuan helps world financial stability and the growth of trade.

But the US thinks otherwise, and for months Washington has pressed China to increase the value of its currency.

Once again, China's government is making it clear it will not be pushed into revaluing its currency.

The US says the current value of about 8.3 to the US dollar is artificially low.

That in turn makes Chinese goods artificially cheap and distorts world trade patterns, Washington says.

Whatever the rights and wrongs of this argument, China appears to be sticking to its position.

Any revaluation of the yuan will be done gradually and when China decides, not when Washington or anyone else demands it.


BBC NEWS: VIDEO AND AUDIO
Watch the Chinese PM make his stand before EU finance chiefs




SEE ALSO:
US urged to be patient over China
24 Jun 05 |  Business
Greenspan adds to yuan pressure
07 Jun 05 |  Business
US ups ante over Chinese currency
17 May 05 |  Business
China's yuan under fresh pressure
06 Jul 05 |  Business
China denies currency rise rumour
13 May 05 |  Business
Yuan adjustment talk 'groundless'
13 Oct 04 |  Business


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