Opening a one-day China-European Union summit, both Chinese Premier Wen Jiabao and EU president Herman Van Rompuy admitted to differences of view after Wen told European leaders to back off from demands that Beijing increase the value of the yuan.

"I say to Europe's leaders -- don't join the chorus pressing (China) to revalue the yuan," Wen told a Europe-China business forum shortly before meeting with EU bosses.

"We have commonalities but at same time differences in our approach," Van Rompuy said.

"This is to be expected and should not impede our joint will to bring our relationship to a higher level. To the contrary they should stimulate our discussion," he said.

A news conference due to be held at the close of the summit was cancelled by the EU but no reason was given.

Wen headed into the potentially fractious summit facing calls for improved trade conditions, a revaluation of the yuan and progress on human rights.

He responded by saying: "It is true that between China and the EU there are still a number of major issues that have remained unresolved for a long time."

"That is not in keeping with the fundamental interests of both sides," he said.

"Facing the impact of perhaps a once-in-century international financial crisis to meet the challenges head-on and build on past achievement, to constantly advance the EU/China relationship is a constant requirement of our times and the political mission of leaders of the two sides," he added.

Beijing has faced a growing clamour led by the United States and Europe to appreciate a currency the West says is grossly undervalued to promote cheap China exports.

Adding to the complaints, the IMF Wednesday said China needed a stronger currency to boost domestic consumption and lower reliance on exports.

Gripes by business leaders over lack of access to China's market and skewed trade patterns are likely to add to the grievances piling up against Beijing.

earlier related report
Chinese PM gets down to business on Italy visit
Rome (AFP) Oct 5, 2010 - Chinese Premier Wen Jiabao will focus on economic ties during a visit to Italy on Thursday on the third leg of a trip across Europe overshadowed by growing global currency tensions, officials said.

Wen has faced intense pressure from Europe to let the yuan appreciate to right huge trade and payments imbalances and some observers say a currency war is looming but his trip to Italy is expected to be more about deal-making.

"He will speak with (Italian Prime Minister Silvio) Berlusconi about high-speed rail, airports, the ageing ports of southern Italy, highways and industries to be relaunched," Italy's La Repubblica daily reported.

"For China, Italy is one of the most convenient trade platforms on the Mediterranean and the billions from China's sovereign wealth fund are ready to be invested in infrastructure," La Repubblica said, without quoting sources.

Chinese companies have already invested in the ports of Naples and Taranto -- both seen as important bridgeheads for Chinese exports in Europe.

Italian business daily Il Sole 24 Ore also reported that Chinese technology giant Huawei will sign a deal with operator Vodafone Italy during the visit.

The partnership for broadband Internet would include setting up a research centre in Milan worth 100 million euros (139 million dollars).

"Huawei clearly intends to take root in the Italian market with a long-term partner," David Wang, chief executive of Huawei Italia, was quoted as saying.

Wen is expected to arrive later on Wednesday and will meet Berlusconi, President Giorgio Napolitano, as well as the speakers of parliament and senate on Thursday before leaving later in the day for Turkey.

Napolitano is himself set to visit China later this month, officials said.

There will also be talks between business leaders from China and Italy and Wen will meet with representatives of Italy's growing Chinese community, which numbers more than 200,000 people, embassy spokeswoman Yang Yenyen said.

"A dozen agreements for cooperation in the economic, justice, cultural, scientific, environmental and financial sectors will be signed," the embassy said in a statement.

"The two sides will also announce a three-year action plan to reinforce economic collaboration... to define the priority sectors and projects for pragmatic cooperation."

The aim is to boost the trade turnover between China and Italy to 80 billion dollars by 2015 from around 40 billion dollars expected this year, Il Messaggero daily said.

Il Sole 24 Ore quoted Chinese Vice Foreign Minister Fu Ying as saying that talks in Rome will be on how to confront the financial crisis "jointly."

"China and Italy have a deep cooperation," Fu was quoted as saying.

Fu also however mentioned "frictions" over the Chinese community in Italy, which is seen in a bad light by many Italians because of its increasing influence in traditional sectors such as textiles and catering.

During his visit Wen will inaugurate a Chinese Culture Year in Italy and present friendship awards to 10 personalities including Marco Mueller, cinema director of the prestigious Biennale di Venezia.

del.icio.us	Digg	Reddit
YahooMyWeb	Google	Facebook

Memory Foam Mattress Review

SPACE MEDIA NETWORK PROMOTIONS Solar Energy Solutions Tempur-Pedic Mattress Comparison ... Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News