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Sarkozy tackles Hu on yuan and human rights

French President Nicolas Sarkozy brought his trademark directness to China on Monday, publicly urging President Hu Jintao to let the yuan rise more swiftly and cajoling Beijing to do more to respect human rights.

Posted: Monday, November 26, 2007, 8:43 (GMT)
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BEIJING - French President Nicolas Sarkozy brought his trademark directness to China on Monday, publicly urging President Hu Jintao to let the yuan rise more swiftly and cajoling Beijing to do more to respect human rights.

Hu listened impassively as Sarkozy, fresh from overseeing the signing of business contracts worth nearly $30 billion, praised China but said it had to shoulder growing responsibilities on issues such as the environment and exchange rates.

"We need to arrive at currency rates that are harmonious and fair," Sarkozy said with the frankness that has become the hallmark of his young presidency.

"This means that, for its own sake as well, China needs to accelerate the appreciation of the yuan against the euro," he said at a joint media appearance with Hu in the Great Hall of the People off Tiananmen Square.

The European Union, which has overtaken the United States this year as China's largest trading partner, has been ratcheting up pressure on Beijing to correct what it sees as the yuan's unfair undervaluation.

It has also fallen in line with Washington by taking a harder approach on trade issues such as intellectual piracy and barriers to China's markets.

EU Trade Commissioner Peter Mandelson irked China with a warning that its reputation was at risk after a series of product safety scandals and that it must do more to tackle the problem.

Vice Premier Wu Yi, known as China's "Iron Lady", was upset by Mandelson's remarks, made at a conference in Beijing. "I am extremely dissatisfied," an angry-sounding Wu told reporters.

China's relations with EU heavyweight Germany have been particularly fraught since Chancellor Angela Merkel infuriated Beijing two months ago by meeting the Dalai Lama, Tibet's exiled spiritual leader.

Sarkozy, on a three-day state visit, made no mention of Tibet in his remarks, but he took the opportunity to urge China to do more on press freedom, the death penalty and the rule of law.

The president was also direct on China's responsibility as a leading emitter of greenhouse gases to step up its efforts to tackle global warming.

"We hope China's growth can continue, but we also hope China's growth is carbon-free and environmentally friendly," he said.

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