China on Monday pledged to push ahead with currency reforms but only at its own pace, and pressed for an end to US curbs on high-tech exports.

President Hu Jintao made the remarks on the currency at the start of the two-day China-US Strategic and Economic Dialogue (S&ED), where high-level officials began wide-ranging talks on financial market reforms, trade and reviving global growth.

"China will continue to steadily advance the reform of the formation of the renminbi exchange rate mechanism under the principle of independent decision-making, controllability and gradual progress," Hu said.

US Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner sat onstage behind him at the Great Hall of the People. They are leading a delegation comprising about 200 officials to Beijing for the talks.

China has kept the yuan pegged at a rate of about 6.83 to the dollar since mid-2008, after the currency gained 21 percent from 2005 to 2008.

Although both sides are "low-profile" on the matter, "Hu's words send a message that China is considering the issue seriously. There is a high possibility that China will allow the yuan to rise during the third quarter", said Dong Xian'an, chief economist at Industrial Securities.

Geithner said the US welcomes the fact that "the Chinese leadership has recognized the reform of the foreign exchange rate mechanism is an important part of the broader reform agenda".

In a separate session with Geithner, Vice-Premier Wang Qishan pressed for an end to export controls on "dual use" technology with possible military applications.

"During this dialogue, we hope to hear from the US side in detail its timetable and roadmap for gradually removing barriers to hi-tech exports to China," he said.

Washington is reviewing its export controls, which are meant to deny China's military access to technology that might aid its modernization. They apply to goods such as supercomputers, lasers, navigation systems and high-performance materials used in missiles.

US Commerce Secretary Gary Locke said earlier the review of the system was expected to be completed by summer and Washington would then decide whether to relax the controls.

"China is pleased to note the US initiatives to relax export controls," Wang said.

Vice-Premier Wang Qishan (second from right) greets US Secretary of State Hillary Clinton as State Councilor Dai Bingguo (right) and US Treasury Secretary Timothy Geithner (left) look on during a photo session ahead of the opening ceremony of the China-US Strategic and Economic Dialogue in Beijing on Monday.[China Daily]

Minister of Commerce Chen Deming also urged the US to translate words into action in easing export restrictions.

The US contributed 7.5 percent of China's hi-tech imports last year, down from 18.3 percent in 2001 partly due to the export controls, the ministry said.