(FT) -- Forcing Beijing to revalue its currency would lead to a "disaster for the world", Wen Jiabao, China's premier, has warned amid increasing tensions over efforts by governments and central banks to hold down their exchange rates.
Speaking in Brussels, Mr Wen hit back at international criticism of China's currency policy, saying that acceding to demands for a faster rise in the renminbi could cause social unrest in China.
"Do not work to pressurise us on the renminbi rate," Mr Wen said, departing from prepared remarks. He said Chinese export companies had very small profit margins, which could be wiped out by actions such as the currency import tariffs the US Congress is threatening to impose.
"Many of our exporting companies would have to close down, migrant workers would have to return to their villages," Mr Wen said. "If China saw social and economic turbulence, then it would be a disaster for the world".
Mr Wen's comments come a day after a trio of leading European Union officials, including Jean-Claude Juncker, chairman of the eurozone group of finance ministers, were politely rebuffed when they asked China to allow the renminbi to appreciate faster.
CNN
