Premier Wen Jiabao urged Tuesday the European Union (EU) to objectively and fairly treat the RMB exchange rate issue as that would benefit the EU, China, and the world economy.

Wen made the remarks while meeting the Euro Group troika, including Euro Group President and Luxembourg Prime Minister Jean-Claude Juncker, European Central Bank President Jean-Claude Trichet and EU Economic and Monetary Affairs Commissioner Olli Rehn.

The meeting took place on the sidelines of the two-day eighth Asia-Europe Meeting (ASEM) Summit in Brussels as China is under external pressure to appreciate its currency.

Wen said China would further reform its formation mechanism of the yuan exchange rate to increase the currency's flexibility.

China's central bank has announced on June 19 a series of steps of reforms. The Chinese currency has so far strengthened by about 2 percent against the US dollar.

China would also continue to expand import from the EU and strive to balance the trade, said Wen, adding that China was committed to transforming its economic development pattern, restructuring the economy and increasing domestic demands.

Wen called on both sides to develop healthy ties from a strategic perspective as the EU has become China's largest trading partner while China stands as the EU's important exporting market.

As the world economy was gradually recovering with uncertainties still hovering high, China and the EU should work together to combat the international financial crisis, Wen added.

The Euro Group leaders appreciated China's support for the euro and the euro zone, saying the EU and China were good partners and enjoy extensive common interests.

They also said the EU rejected both trade protectionism and currency war, and agreed differences and problems should be solved by dialogues.

In a speech to the Greek parliament on Monday, Premier Wen said China supported a stable euro and would not reduce its euro-bond holdings.

The three Euro Group leaders also held talks with China's Finance Minister Xie Xuren and central bank governor Zhou Xiaochuan here on Monday. Wen said the talks were "detailed and friendly".