China pressurised to let currency appreciate
27 Nov 07

The EU is expected to pressurise China this week into allowing its currency to appreciate.

As a result of a weak renminbi, the trade deficits of Europe and the US have been soaring (albeit, the US trade deficit has begun to narrow due to the falling dollar).

In the Eurozone area, the trade deficit with China rose by 25% in the first eight months of the year to 70bn euros (£50.23bn).

But Wen Jiabao, the premier of China told Sarkozy that China will continue to adopt a gradual revaluation of their currency.

Links:
China rejects Sarkozy call to hasten rise of the renminbi - The FT (27 Nov 07)