CHINA SIGNALLED its willingness to co-operate with Europe on efforts to combat climate change but, as expected, it rejected calls by the European Union, its biggest trading partner, to allow its currency to rise.
The Chinese and the EU were holding talks in the eastern city of Nanjing, which were the most significant discussions between the two sides for two years.
Addressing a media briefing with European Commission president José Manuel Barroso and Swedish prime minister Fredrik Reinfeldt, prime minister Wen Jiabao said China was “solemn and serious” in its vow to cut the amount of carbon dioxide emitted per unit of economic output by 40-45 per cent by 2020.
Relations between the EU and China are generally good, and the communique from the talks stressed notions of harmony and “win-win”. However, there are differences on trade and the currency, as well as political issues about human rights, and the relationship does not carry quite the same weight as the Sino-US relationship.
The EU leaders were met by Mr Wen, who is nominally the top official of the government but second in the hierarchy to President Hu Jintao, whereas Mr Hu stood on stage beside President Barack Obama during his visit here in November.
Sino-US relations do not appear overly warm, but the relationship remains important to both countries.
Speaking at the briefing, Mr Wen said the Chinese plan was “a major contribution to global efforts” against climate change.
He added that China placed “high importance” on global talks in Copenhagen on December 7-18th, aimed at reaching a new climate change pact.
“China is willing to work to move the conference in the right direction,” he said.
However, Mr Wen restated China’s position that developed countries must lead the way in the talks by offering big cuts in carbon emissions.
Advanced economies must also make financing and technology available to developing nations to help them tackle global warming, Mr Wen added.
Mr Reinfeldt said he thought countries were not aiming high enough in their proposals to reduce carbon emissions.
“More needs to be done,” he said.
Mr Wen suggested that renewable energy and areas such as clean-coal technology could be a focus for co-operation between the two sides.
He also congratulated the EU on the coming into force today of the Treaty of Lisbon and said he hoped closer European integration would have a positive influence on the growth of China-EU ties. Mr Reinfeldt also called for greater progress on human rights in China, which did not elicit a response from Mr Wen, though he did refer to the importance of sovereignty being respected, a common response when foreign leaders raise the issue.
For the second time in a few short weeks, China rebuffed calls by a major trading partner to allow its currency to rise, when it issued the same message to the EU as it did to Mr Obama last month.
Mr Wen said calls on Beijing to push up the yuan’s exchange rate were unfair, especially in the context of what he sees as protectionist measures by the West.
Mr Wen said maintaining the basic stability of the renminbi exchange rate, especially against the background of the economic crisis, was “critical” and had helped China’s development, thus aiding economic recovery of the rest of the world.
“Some countries, on the one hand, want the renminbi to appreciate but, on the other hand, engage in brazen trade protectionism against China,” Mr Wen said.
The EU leaders had hoped for a reversal in the euro’s climb against the yuan as they are worried a rising euro could stall euro zone recovery as it tries to compete with exports from China.
About 20 per cent of China’s exports go to Europe, and the EU runs a large bilateral trade deficit with China.
The Chinese have also said they are not planning to stop their fiscal stimulus spending to help prime the economy and offset the impact of the credit crunch, and urged the Europeans to act in similar fashion.
China’s economic growth is getting close to the levels of about 10 per cent seen before the economic crisis pushed the government to adopt a four trillion yuan (€400 billion) economic stimulus package.