Chinese Premier Wen Jiabao has rejected foreign pressure on Beijing to allow its currency, the yuan, to appreciate, warning other countries to stop "finger-pointing".
The United States and the European Union, key trade partners for China, say the Communist leadership has intentionally kept the currency low to boost its exports, vital to the country's emergence from the global economic crisis.
US President Barack Obama called on Beijing last week to adopt a "market-oriented" exchange rate policy, upping the pressure on China to allow the yuan - effectively pegged to the dollar since mid-2008 - to appreciate.
Wen hit back, rejecting all outside interference in China's exchange rate policy decisions and saying a stable yuan had helped not just China, but also the world, emerge from the worldwide slowdown.
"We are opposed to the practice of engaging in mutual finger-pointing among countries or taking strong measures to force other countries to appreciate their currencies," Wen told a press conference on Sunday.
"This kind of practice is not in the interest of the reform of the renminbi (yuan) exchange rate regime," he said at the end of China's annual session of parliament.
The premier said China had made "strong efforts" since the outbreak of the international financial crisis to keep the yuan at a "stable level".
The value of the yuan has become a major sticking point in relations between China and the United States, which are badly strained over a number of other issues including a spate of trade disputes, Tibet, Taiwan and internet freedom.
US calls for reform
Obama on Thursday had called on China to adopt a "market-oriented" exchange rate policy, which he said would make an "essential contribution" to rebalancing the world economy after the global financial crisis.
But Beijing had quickly rejected those remarks on Friday.
"We don't agree with politicising the renminbi exchange rate issue," People's Bank of China vice governor Su Ning said, according to Dow Jones Newswires.
"We also don't agree with a country taking its own problems and having another country solve them," Su said.
"We believe the yuan exchange rate issue will not help shrink or increase our trade surpluses and deficits."
Many US politicians are pressing the Treasury Department to label China a currency "manipulator" in a forthcoming semi-annual report.
