Europe's trade deficit with China jumped 25 percent to a record in the seven months through July, increasing tensions on foreign-exchange policy ahead of a meeting of the Group of Seven nations tomorrow. Imports from China to the 13-nation euro area increased 21 percent to 93.4 billion euros ($133 billion) in the January-July period, according to figures published today by the European Union's statistics office in Luxembourg. That compares with a 15 percent increase in European exports to China and left the deficit at 59.9 billion euros. European officials, concerned that the euro's strength against the yuan and other currencies is making exports less competitive, will raise the issue of exchange-rate volatility with G-7 counterparts at tomorrow's meeting in Washington. While the yuan has gained almost 10 percent versus the dollar in the past two years, it has fallen more than 6 percent against the euro in that period. Europe is ``unlikely to hasten the pace of yuan appreciation,'' said Kimberley Forkes, an economist at Moody's Economy.com in London. ``China will let the yuan appreciate in its own time, not rapidly, and certainly not in any way that's going to discourage domestic growth.'' http://www.bloomberg.com/apps/news?pid=20601087&sid=a6R4xs6Srv6g&refer=home Chinese not only hoarding USD !