On Sunday, China stated that any appreciation in its currency value would be gradual, a day after announcing that it would allow a more flexible currency. This move is a clear attempt to reassure the Chinese people that there would not be a disruptive change, many of whom view the appreciation as a sign of submission to the United States.
China has come under increasing international pressure to change its currency policy, especially from the US, insisting that China is artificially keeping the value of the yuan low to help its exporters at the expense of foreign competitors.
China has effectively pegged the yuan to the US dollar for the last two years. In 2005, it briefly allowed a controlled appreciation of the currency, but ended that policy when the global economic crisis threatened demand for its goods abroad.
China Yuan Stability Pledged [BBC News, 20 June 2010]
Rise in Currency to be Slow, China Insists [The New York Times, 21 June 2010]