EU-China split over yuan,trade in tug-of-war summit

China and the European Union openly admitted to splits at a summit on Wednesday as Beijing again rebuffed Europe's demands that it increase the value of the yuan to help ease massive trade imbalances.

China and the European Union openly admitted to splits at a summit on Wednesday as Beijing again rebuffed Europe’s demands that it increase the value of the yuan to help ease massive trade imbalances.

As a soaring euro worried EU exporters,Premier Wen Jiabao went into the summit with the United States and Europe clamouring that Beijing change course on a currency they say is grossly undervalued to promote cheap China exports. I say to Europe’s leaders dont join the chorus pressing (China) to revalue the yuan, Wen told a Europe-China business forum ahead of the talks.

A sharp yuan appreciation would cause many Chinese companies to go bankrupt,casting people out of work… and creating social unrest,he warned. If Chinas economy suffers a crisis,that wouldn’t be a good thing for the world as a whole, he added. In a rare move shortly after,both Wen and the EU leadership expressed their differences in public,albeit while urging progress in relations.

China faced a gamut of potentially fractious issues at the one-day meeting with its top trading partner calls for improved trade conditions,revaluation of the yuan and progress on human rights.