China will not cave in to pressure from other countries to allow its currency to appreciate while the global economy remains fragile, China's Commerce Minister said on Saturday (March 6).

The central bank governor said it will instead allow the yuan to resume its rise at some point when it exits from the loose money and credit policies that it has been pursuing to prop up the world's third-largest economy.

The remarks from two of the country's economic leaders came at a two-hour press briefing on the sidelines of the second day of the annual National People's Congress, China's Parliament.

China is under intense pressure from the United States and Europe to abandon the exchange rate peg it instituted of around 6.83 yuan per dollar in the middle of 2008 to preserve the competitiveness of its exporters during the international financial crisis.

The global recovery partly hinges on major economies like the US exporting more to create badly-needed jobs there.

But Commerce Minister Chen Deming said on Saturday that China must keep its yuan stable while the global recovery remains uncertain.

"The US has continually politicised some economic and currency issues," he said. "I strongly disapprove of this."

He was responding to a question from a journalist about accusations in the US that China manipulates its exchange rate to keep its exports competitive.

Premier Wen Jiabao pledged during his annual address to China's legislature last Friday that the government would stick to a basically stable yuan and a policy of relatively loose money.

This is necessary to support growth as the foundations for China's recovery from the global crisis are not yet solid, he said.

On Saturday, Mr Chen said that the US should not link trade and currency issues, and instead should focus on the bigger issue of addressing bilateral trade imbalances.

China is already doing its part, he said, pointing out that it has been "actively supporting domestic consumption as a driver of economic growth".

Zhou Xiaochuan, the governor of the central bank, said China would eventually drop its 'special' yuan policy of effectively pegging the renminbi to the US dollar when recovery is certain.

"Practice has shown that these policies have been positive, contributing to the recovery of both our country's economy and the global economy," he said at the briefing. "The problem of how to exit from these policies arises sooner or later."

Most analysts are already anticipating this move.

HSBC China economist Qu Hongbin said: "Given that the recovery in both gross domestic product and exports has been stronger than expected, we still hold the view that the renminbi will resume gradual appreciation starting in the second quarter of this year."