Speaking in Berlin after talks with Angela Merkel, Germany’s chancellor, he insisted that Beijing’s policy on the renminbi was “orientated towards market needs” and “flexible”.
Mr Wen’s defence of China’s currency regime followed last week’s decision by Tim Geithner, the US Treasury secretary, to break a long-standing taboo and accuse China of manipulating its currency to support exports.
The Chinese premier, who is on a European tour this week, said that China would keep the renminbi at a “reasonable and balanced level”.
Likening strong fluctuations in global currencies to a rollercoaster ride, Mr Wen said China was not to blame for that volatility.
Mr Wen and Ms Merkel pledged to work closely together to reform the global financial system and rejected protectionism ”of any kind”.
Ms Merkel signalled a commitment to involving developing countries including China more closely in international efforts to find a solution to the global financial crisis. “Most questions can no longer be solved by G8 nations alone,” she said.
As the world’s two biggest goods exporters, Germany and China are vulnerable to the slowdown in global demand.
The two leaders pledged to enhance trade links. Mr Wen said he had no desire to run a trade surplus and would discuss ways that Chinese companies could purchase more German technology.
Michael Glos, Germany’s economics minister, later said that it remained open to investment from abroad, including from sovereign wealth funds such as China’s $200bn fund, which has attracted controversy with some of its investments abroad.
Raising the sensitive issue of Tibet, Ms Merkel urged China to hold talks with the Dalai Lama, the exiled spiritual leader.
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