As has been confirmed by official reports, Prime Minister of China, Mr. Wen Jiabao, has completely rejected to succumb under European pressure to let the country's Yuan rise against the Euro. While rejecting the offer and speaking at a summit with the EU leaders in Nanjing, Mr. Wen proclaimed that it was completely unfair of Europe to "demand exchange rate changes while maintaining trade protectionism".

For over 18 months now, China has kept the Yuan pegged to the weakening American Dollar, which has hurt Europe's experts to China. In his country's defense, Mr. Wen stressed that making sure that China's exchange rate is kept at a stable level has helped the world's economic recovery.

Mr. Wen has maintained that China would keep what he believes is a "reasonable and balanced exchange rate". He has asserted that the Yuan's stability against the Dollar has not only benefitted China's recovery, but also nudged the world's economic recovery to go faster.

EU, which is China's largest market, accounts for nearly 20% of the country's exports, and EU President Jose Manuel Barroso had urged China to address the currency concerns on Sunday. "Major imbalances because of trade or because of currencies can create problems in the future if they are not fully addressed", Mr. Barroso stressed.

China seems to believe the exact opposite and has out-right rejected the appeal, while sticking to its stance ever firmly. The EU is still to react on the rejection.