The summit meeting in Brussels on Wednesday saw some verbal tussling as China warned the EU to stop pressuring for a revaluation of the yuan and as the EU, in its turn, took China to task for a number of transgressions aside from currency, such as counterfeiting, theft of technology, clamping down on rare earth exports and discriminating against foreign companies.
According to a Reuters report, Chinese premier Wen Jiabao told the EU that a swift change in currency valuation could bring social turmoil. Instead, he said EU leaders should look at the U.S. dollar to explain fluctuations in the euro’s exchange rate. He also said that the trade surplus China holds against the U.S. was a result of “specific structures of the two economies,” and not because of the exchange rate with the yuan.
In his refusal to speed currency reform, Wen said, "Many of our exporting companies would have to close down, migrant workers would have to return to their villages. If China saw social and economic turbulence, then it would be a disaster for the world."