China Suggests adjusting Chinese exchange-rate system will be based on the world's economic situation and China's own economic performance
BEIJING—A senior Chinese finance official called on major reserve-currency nations to keep their exchange rates stable amid the euro-zone debt crisis, suggesting that China will wait for more clarity in Europe before allowing its own currency to fluctuate in value.

Assistant Finance Minister Zhu Guangyao also appeared to urge the U.S. not to press China on the currency issue during strategic talks between the two countries next week. While U.S. Treasury Secretary Timothy Geithner had been expected to push China to allow its currency to appreciate, this key U.S. goal is no longer expected to dominate talks because of the European sovereign-debt turmoil.

Mr. Zhu, echoing earlier statements by Chinese leaders, said how and when Beijing adjusts its exchange-rate system will be based on the world's economic situation and China's own economic performance.

"I want to specifically point out that we will not succumb to external pressure, while promoting the process," Mr. Zhu said in a news conference. He added that China and the U.S. "should maintain quiet communication" on the exchange-rate issue.

Chinese Vice Premier Wang Qishan and Mr. Geithner will lead the economic discussions at the bilateral Strategic and Economic Dialogue, as hundreds of government officials from Washington and Beijing convene in the Chinese capital for the second round of high-level talks since President Barack Obama took office. The two-day talks start Monday.

Mr. Geithner in April delayed a report to Congress on the currency policies of major trading partners, including China, saying the coming meetings would be the best channels for advancing U.S. interests.

But since then the euro, hurt by the sovereign-debt crisis in Greece that has affected much of Europe, has sunk to four-year lows.

Mr. Zhu said that just as all countries worked together to tackle the challenges of the global financial crisis that erupted in September 2008, "in the face of the challenges posed by the sovereign-debt crisis, China, the U.S. and European countries need to strengthen macroeconomic policy coordination."

Beijing has said its move toward a more market-oriented exchange rate was put on hold to provide stability and help China weather the global financial crisis.

While market expectations had been building for Beijing to let the yuan appreciate to counter domestic inflationary pressures, Mr. Zhu's comments reinforced analysts' expectations that China will hold off any currency adjustment until the euro-zone crisis eases.

In March, People's Bank of China Gov. Zhou Xiaochuan said China would exit the special exchange-rate mechanism—a reference to the de facto peg the yuan has held to against the U.S. dollar since July 2008—at some point.