* EU's de Gucht ups pressure on China over forex
* Says yuan revaluation would boost economic recovery
* China became world's biggest exporter in 2009
(Combines stories, adds details and background)
By Darren Ennis and Dale Hudson
BRUSSELS, Jan 12 China should revalue the yuan
to ease global trade imbalances, the European Union's trade
commissioner-designate said on Tuesday, heaping more pressure on
Beijing to let its currency appreciate.
Revaluation of the yuan would boost economic recovery,
helping China as well as other countries, Karel de Gucht told
"When one looks at trade flows between the EU and China ...
the overall answer is, there should be a revaluation of the
renminbi (yuan)," he said after setting out his policy plans to
the European Parliament.
He told the 27-country EU's assembly, which votes on Jan. 26
on whether to approve the new European Commission, that China
"must show its responsibility by being able to address thorny
questions such as currency misalignment".
Growth in China's exports and imports last month exceeded
expectations, providing new evidence of the vigour of the
economy and strengthening the case for Beijing to let the yuan
start climbing again.
On Monday, Olli Rehn, nominated to steer EU economic and
monetary policy for the next five years, said in his
parliamentary hearing that the exchange rate of the euro against
the yuan was "a potential risk for European economic recovery".
Last week, nominees for key U.S. Treasury international
posts said they must work to persuade China to change its
currency practices, or there could not be critical adjustments
to global trade and economic balances.
But China has shrugged off pressure from its major trading
partners for a change in the level of the yuan CNY=CFXS,
repeating its line that stability was in everybody's best
China overtook Germany as the world's biggest exporter of
goods in 2009, but analysts fear a strong acceleration in
imports may heighten the chances of overheating, putting more
pressure on Beijing to tighten its economic policy.
Exports from the Asian powerhouse leapt 17.7 percent in
December from a year earlier, dwarfing the 4.0 percent rise
forecast by economists and breaking a 13-month streak of
year-on-year declines. Imports surged 55.9 percent, much more
than the 31.0 percent increase markets had expected.
Most analysts said Beijing was unlikely to change its
currency policy in response to one month's figures, but some
economists agreed that the yuan could start to rise around the
end of March if exports remained strong.
(Additional reporting by Jan Strupczewski)