Nanjing, China - European Central Bank (ECB) president Jean -Claude Trichet urged China Sunday to let its currency appreciate against the US dollar. An "orderly and gradual appreciation" of the yuan would help eliminate global economic imbalances and benefit the Chinese economy, Trichet told a news conference in Nanjing.
The ECB chief was speaking after talks in the east Chinese city between a EU delegation and Chinese Prime Minister Wen Jiabao on currency issues and ways to over come the global economic crisis.
Luxembourg Premier Jean-Claude Juncker, who heads the euro group of finance ministers, and EU monetary affair commissioner Joaquín Almunia also took part in the discussions along with representatives of China's Central Bank and finance ministry.
Europe believes the Chinese currency is undervalued, which makes EU exports to China more expensive and keeps the price of Chinese goods sold in Europe artificially low.
Europe is China's biggest trading partner.
Juncker said the EU was not pressing for an immediate, short-term revaluation of the yuan, but wanted to see China take a phased approach and adopt a more flexible exchange-rate policy.
China and the EU are due to hold a summit in Nanjing on Monday.
