Chinese PM rebuts criticism over Copenhagen role

Wen Jiabao warns US on currency and defends China's place on world stage, saying his conscience is clear on climate deal
Wen Jiabao during his annual press conference after the National People's Congress
Wen Jiabao during his annual press conference after the closing session of the National People's Congress in Beijing. Photograph: How Hwee Young/EPA

The Chinese prime minister, Wen Jiabao, today launched a robust defence of his country's place on the world stage, including a sharp rebuttal of what he called "baffling" criticism of his country's role at the Copenhagen summit.

Acknowledging "serious disruption" in ties with the US and rising criticism of Chinese assertiveness on the climate, currency, trade and other issues, the premier said he wanted to set the record straight.

"Some say China has got more arrogant and tough. Some put forward the theory of China's so-called 'triumphalism'. You have given me an opportunity to explain how China sees itself," Wen said.

In a press conference marking the close of the annual meeting of the National People's Congress, China's rubber-stamp parliament, Wen said the country was still developing and would never seek hegemony even when fully modernised, but had always sought to uphold its sovereignty and territorial integrity. He said China was a "responsible" nation that took an active part in international co-operation on major issues.

In the angry aftermath of the Copenhagen climate conference, China was accused of wrecking a deal by blocking emission reduction targets for 2050 and failing to send its most senior delegates to key meetings. In his most detailed public comments yet about the conference, Wen responded to critics.

"My conscience is untainted despite rumours and slanders from outside," he said. "It still baffles me why some people are trying to make the issue about China. Climate change is about human survival, the interest of all countries, and issues of equity and justice in the international community."

He accused foreign leaders of a shocking breach of protocol in their attempt to press him, with advance warning, into an unscheduled meeting after a welcome banquet. "Why was China not notified of this meeting? So far, nobody has explained. it is still a mystery to me," he said.

The final deal was the best that could be achieved in the difficult circumstances, he said, promising China's support for the Copenhagen accord.

Asked about other areas of friction, particularly with the US, the premier responded: "The responsibility for the serious disruption in US-China ties does not lie with the Chinese side but with the US."

He cited Barack Obama's recent meeting with the Dalai Lama, the announcement of US arms sales to Taiwan and disagreements over exchange rates and trade. "We are opposed to the practice of engaging in mutual finger-pointing or taking strong measures to force other countries to appreciate their currencies. That is not in the interest of reform of the renminbi's exchange rate regime," the premier said.

There is growing pressure for revaluation from the US and Europe, where many analysts argue that the renminbi is massively underpriced. Chinese experts have also argued that a rise in the currency would be in the country's own interests.

Wen told reporters: "I understand some countries want to increase their exports – what I don't understand is the practice of depreciating one's own currency and attempting to press other countries to increase theirs, just to improve exports. In my view that is a protectionist measure."

He went on to warn the US on its own currency, as he did at his last news conference. China holds more US treasury debt than another country.

"If I said I was worried [about the US dollar] last year, I still want to make the same remark this year," he said. "We cannot afford any mistake, however slight, when it comes to financial assets ... I hope the US will take concrete steps to reassure investors."

Turning to domestic issues, the prime minister warned that China faced "an extremely difficult task" in promoting steady and fast growth while restructuring the economy and managing inflationary expectations. Inflation, corruption and unfair income distribution taken together would be "strong enough to affect social stability and even the stability of state power," he said.

The government is seeking to gradually withdraw from the massive stimulus that helped to see China through the global slump, particularly given soaring property prices and rising inflation, which hit 2.7% in the year to February. But it must do so without damaging confidence.

The premier warned of the risk of a double-dip in the global economy and said that while the domestic economy had stabilised, many Chinese businesses were still reliant on the stimulus measures.

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