China has kept the value of its currency in a narrow band around 8.28 to the dollar since the 1997-98 Asian financial crisis.
Critics, particularly those in the US and Europe, say the rate gives Chinese exports an unfair competitive advantage and is threatening jobs in the West.
The Chinese government is facing increasing pressure from Washington and Brussels to allow the yuan to appreciate.
Sino-US trade frictions have been fuelled in recent months by surging Chinese textile exports following the worldwide lifting of quotas in January.
Washington decided last week to reimpose quotas on three categories of Chinese clothing. Last Tuesday, the European Union issued a final warning to Beijing to restrict textile exports or face possible safeguard measures.
Washington, which has appointed a Treasury department official to persuade the Chinese to adopt a more f lexible yuan policy, has been urging China for two years to modify its pegged currency regime, and has raised the threat of potential trade retaliation if it continues to delay.
Meanwhile, Peter Mandelson, the European Union’s trade commissioner, said that EU states had endorsed emergency talks with China over its surging t-shirts and flax yarn exports.
“There has been overall support in the textiles committee for the proposals I made to the commission last week, ” Mandelson told a European Parliament committee.
