China heads to the Group of Seven meeting of financial ministers in London this week knowing it will come under pressure from rich nations to liberalise its currency. But it probably won't mind.
For Beijing, analysts say the prestige of sitting at the table with the world's wealthiest nations will be worth the pressure -- however diplomatically worded -- it is sure to feel over the yuan's fixed exchange rate.
"It probably wants the recognition that it is a player in global markets and recognition of its importance in global trade and financial markets," said Ben Simpfendorfer, a JP Morgan economist in Hong Kong.
Chinese Finance Minister Jin Renqing and central bank chief Zhou Xiaochuan are expected to reiterate that Beijing will move only gradually to liberalise the yuan, also known as the renminbi, which is now pegged at about 8.28 to the dollar.
A stream of cautious comments from officials and influential academics this month has tempered expectations of an imminent move to tweak the yuan, possibly by widening its razor-thin trading band or tying it to a currency basket.
Critics have complained that the current exchange rate is too low, making Chinese exports artificially cheap on world markets and costing U.S. jobs in industries like textiles.
"The current debate revolves around the renminbi, and the Chinese do recognise that they do need to present their case before the G7," said Arthur Kroeber, managing editor of The China Economic Quarterly.
"It just isn't a matter of getting beaten over the head by other finance ministers, it's an opportunity to present their case on why they are doing what they are doing," Kroeber said.
Other Asian governments have also come under pressure from Europe and the United States to allow their currencies to appreciate to help address global current account inbalances.