From Wall Street Journal:
Chinese and European Union leaders Wednesday agreed that trade imbalances between the two sides were unsustainable, but wrapped up talks without finding common ground on the issue of the euro’s rise against the yuan.
The conclusion of the annual EU-China Summit in Beijing looks unlikely to ease pressure on the yuan to appreciate, or prevent a protectionist backlash from European critics worried about the undervalued yuan undercutting their trade competitiveness.
China and the EU plan to form high-level groups to deal with trade, intellectual property rights, macroeconomy and financial issues, said European Commission President Jose Manuel Barroso and Prime Minister Jose Socrates of Portugal, which holds the rotating presidency of the 27-nation EU group. European Central Bank President Jean-Claude Trichet said the People’s Bank of China, the country’s central bank, and the ECB agreed to set up a “working group” to coordinate on currency-related matters. [Full Text]
