BEIJING, May 16 (Xinhuanet) -- Chinese Premier Wen Jiabao said here Monday that China will not yield to outside pressure in RMB exchange rates reform, noting that China observes the laws of market econo my.

    "The reform of RMB exchange rates is of China's own sovereignty," he said while meeting a delegation of US Chamber of Commerce.

    "Any pressure or media play-up, or to politicize an economic matter will not help solve problems," he said.

    China has a clear-cut attitude in this regard, the premier said."So long as conditions are permitted, China will push reforming RMB exchanges rates on its own initiative, even without outside pressure."

    "However, China will not act rashly if conditions are not permitted, despite strong pressures from outside," he said.

Press ahead with forex reform 

    However, China will unswervingly push forward the reform of the exchange rate system of the Chinese currency, Wen added.

    Wen said the implementation of the reform of the RMB exchange rate system is a necessary requirement for the establishment of the socialist market economy and constitutes a major component of China's reform of its financial sector.

    It is China's "consistent" policy to carry out the reform, he said. 

China's specific condition  

    China has to take into consideration a number of conditions as it pushes forward the reform of exchange rate system of the Chinese currency, Premier Wen said.

    During a meeting here with a delegation from the US Chamber of Commerce, Premier Wen said China has to proceed from the specific condition of the country when pushing forward reform of the RMB exchange rate. He said it is essential to take into consideration such factors as the macro-economic environment, the ability of Chinese companies to withstand the impact of changes in exchange rates, the progress of financial sector reform and the impact on international trade.

    Wen said the Chinese government has done a lot of preparatory work for the reform of RMB exchange rate system, noting that Chinahas been creating favorable conditions for the reform and extensively studying plans of the reform over the past few years.

    Wen underscored that China is a responsible country. Therefore,reform of RMB exchange rate system has to take into consideration its impact on neighboring countries, regions and global finance and economy. Enditem