Blame for strong euro vs yuan lies with U.S.-China

BEIJING, Nov 28 (Reuters) - The euro's rise against the yuan is largely a reflection of a sharp drop in the dollar, and the European Union should look to Washington to resolve the problem, Chinese Premier Wen Jiabao said on Wednesday.

He told a news conference after a China-EU summit that Beijing would continue to reform its currency regime along market lines with the aim of eventually making the yuan CNY=CFXS convertible for purely financial transactions.

EU officials expressed frustration at the summit over the yuan's 8 percent slide against the euro since July 2005, even though Beijing has let the tightly managed yuan rise 10 percent against the dollar over the same period. (Reporting by Chris Buckley, Writing by Alan Wheatley)