Wen Jiabao: China will not use rare earth as a bargaining tool

Summary of Premier Wen Jiabao to attend the Sixth China-EU Business Summit speech on October 6 in Brussels said, "is to manage and control the rare earth necessary, but never blocked. China not the earth as a bargaining tool, we the goal of...

Premier Wen Jiabao said in a speech at the 6th China-EU Business Summit in Brussels on October 6 that "the management and control of rare earths is necessary, but it will never be blocked. China will not use rare earth as a bargaining tool, our The aim is for the sustainable development of the world."
In the face of the EU business community, Wen Jiabao used a large amount of data and facts to explain China's position and views in a comprehensive, profound and candid manner on the three issues of the RMB exchange rate, investment environment and rare earth exports. It is reasonable and powerful for those opinions with ulterior motives. There are festival refutations.
The China-EU Business Summit is a grand gathering of Chinese and European entrepreneurs, and it is now the sixth. This year, a large number of well-known enterprises in China and Europe are actively participating in the conference, and Chinese entrepreneurs are doing their best. With the sensitivity of entrepreneurs, they are aware of the broad prospects and endless hopes of China-EU cooperation.
EU exports to me increased by 42% in the first half of the year
Wen Jiabao pointed out in his speech that trade and investment between China and Europe are developing rapidly. In the first half of this year, EU exports to China increased by 42%. Wen Jiabao said that Sino-German trade is about 10 billion U.S. dollars per month and may exceed 120 billion U.S. dollars this year. The entire China-EU trade was about 400 billion U.S. dollars in 2009 and may exceed 500 billion U.S. dollars this year.
Regarding the investment environment issues that entrepreneurs care about, especially intellectual property rights, independent innovation, and government procurement, Wen Jiabao said: "I can tell you responsibly that all enterprises registered in China are legally entitled to national treatment and are manufactured by foreign companies in China. The products are made in China, we must not only protect your intellectual property rights, but also protect all of your legitimate rights and interests."
In terms of trade and investment, Wen Jiabao said that the EU has become China's largest partner, far exceeding the United States and Japan. China hopes to develop broader, deeper and closer economic and trade relations with EU countries.
China does not pursue a surplus. For some time, some politicians and media in Europe and the United States have hyped up the issue of the RMB exchange rate and blamed China. Wen Jiabao pointed out that the exchange rate of the euro has fluctuated greatly recently, but it was not caused by the renminbi, but by the dollar. “Our goal is to pursue balanced, sustainable trade and never pursue a surplus.”
Wen Jiabao quoted data pointing out that from the reform of the RMB exchange rate formation mechanism in 1994 to the present, the real effective exchange rate of the RMB has appreciated by 55%, and some major currencies have depreciated. In July 2005, the RMB exchange rate formation mechanism further deepened the reform. Up to now, the RMB has appreciated by 22% against the US dollar. During this period, China’s trade surplus with the United States has increased substantially.
"China's trade in goods is a surplus, trade in services is a deficit; processing trade is a surplus, general trade is a deficit; it is a surplus for the United States and the European Union, and a deficit with South Korea, Japan and ASEAN. Does this mean that this is a trade structure issue rather than a trade structure? Is the exchange rate problem?" he said.
Bai Lewei, chairman of the China-Britain Trade Association and chairman of the EU China Trade Association, said at the scene that "I heard a wonderful speech. Premier Wen Jiabao speaks with facts and figures, and no one can refute him. This is power."

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