China has rejected European Union pressure to adjust the value of its currency, the yuan.
A top European economic meeting in Luxembourg yesterday criticised China's currency policy and called for the yuan to be allowed to ‘move’.
But foreign ministry spokesman Liu Jianchao responded that China already had allowed the yuan to strengthen more than 9% since 2005.
Liu said China will stick to its policy of gradual yuan appreciation that has riled trading partners.
China revalued its currency in July 2005 and Beijing has since repeatedly said it will allow the yuan to strengthen as part of overall reforms to a financial system it says would risk collapse with a full flotation.
Trading partners such as the US and the EU say the yuan's relatively low value makes Chinese exports more attractive overseas, hurting their own exports.
The EU meeting also agreed to dispatch a delegation of top euro zone officials China to raise their concerns about exchange rates with Chinese there by the end of the year.
They would include European Central Bank President Jean-Claude Trichet, EU Economic Affairs Commissioner Joaquin Almunia and chairman of the Eurogroup of finance ministers, Jean-Claude Juncker.
