Chinese Premier Wen Jiabao warned leaders of the European Union not to criticize what many perceive to be China’s undervalued currency, the Wall Street Journal reported. His comments come in response to sharp criticism of the renminbi this week from EU leaders such as Germany’s Chancellor Angela Merkel and EU Monetary Affairs Commissioner Olli Rehn. "If the yuan is not stable, it will bring disaster to China and the world," Wen said in a speech before EU officials and business leaders, adding that a sharp appreciation would lead to the collapse of China’s export industries. While the renminbi has strengthened 2% against the dollar since June, it has fallen by almost 10% against the euro, leading some to suggest that China’s currency is hamstringing the EU’s economic recovery.
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