BBC News
14 March 2010

Chinese Premier Wen Jiabao takes a question at a news conference at the end of the NPC meeting – 14 March 2010
US arms sales to Taiwan violated China’s sovereignty, Mr Wen said

Chinese Premier Wen Jiabao has rejected criticism that China is keeping its currency undervalued in order to boost exports.

He said keeping the yuan stable was “an important contribution” to global recovery from the economic downturn.

He was speaking at the end of China’s annual parliamentary session.

Mr Wen also said that recent strains in ties with the US were Washington’s fault, citing arms sales to Taiwan and a White House visit by the Dalai Lama.

Speaking to reporters in Beijing, Mr Wen denied China’s currency, the yuan, also known as the renminbi, was undervalued.

US legislators and trade groups say the yuan is kept up to 40% below what its value should be against the US dollar.

Sovereignty ‘violated’

“I don’t think the renminbi is undervalued,” Mr Wen said at Sunday’s news conference in the Great Hall of the People.

“We oppose all countries engaging in mutual finger-pointing or taking strong measures to force other nations to appreciate their currencies.”

The yuan was tied to the dollar until 2005 when it was allowed to rise in value by about 20%    more …