Sarkozy urges China to fix surpluses

Discussion in 'Wall St. News' started by bluud, Oct 19, 2007.

  1. bluud


    Why is everyone fucking whining, is he pissed his wife is leaving his gay ass?

    LISBON, Portugal

    French President Nicolas Sarkozy urged China on Friday to curb massive financial and trade surpluses.

    Speaking after a two-day EU summit and as a meeting of G-7 officials kicks off in Washington, he said there was no consensus that the euro -- which has soared against the dollar -- "is overvalued. But everyone agrees some other currencies are undervalued," he added, referring to the Chinese currency.

    Sarkozy's comment echoed the EU view that China -- a country with a vast and growing current account surplus -- must allow the yuan to trade more freely.

    "Great nations have rights," said Sarkozy. "But they also have duties."

    The euro traded at $1.43 on Friday, well over the "pain threshold" of $1.40 identified by EU business leaders. A strong euro make European exports -- from French wines to Italian fashion to cashmere sweaters -- pricey in the United States, the continent's main export market.

    Some EU governments feel a strong euro reflects a strong European economy, able to ride out problems. France has not been among them.

    This month the euro zone finance ministers called on China to reduce its massive trade and current account surpluses. Critics say China keeps the yuan undervalued, giving its exporters an unfair price advantage and adding to its growing trade surplus.

    Officials from the Group of Seven -- United States, Japan, Germany, France, Britain, Italy and Canada -- are meeting in Washington. Turbulence in global financial markets is expected to be the top item on their agenda.