Jean-Claude Juncker of Luxembourg, the head of the 16 EU nations that use the euro, on Monday said they have urged China to consider a "broad-based appreciation" of the Chinese yuan against the dollar and other major currencies.
Juncker told journalists that he expressed the view at a breakfast meeting Tuesday in Brussels with Chinese Prime Minister Wen Jiabao.
"The success of the European recovery is in the best interests of China," said Juncker.
A stronger Chinese currency would make it easier for European companies to export to China. In recent decades, China has encouraged rapid economic growth by keeping its currency artificially low. This makes it cheap for US and European companies to buy products in China. However, a stronger Chinese currency would make it more difficult for China to export, which could lead to unemployment and social instability.
Also at the meeting were EU Monetary Affairs Commissioner Olli Rehn and European Central Bank President Jean-Claude Trichet. Distributed by Tubemogul.
