Recent complaints from the United States about the Chinese yuan have escalated. Chinese Premier Wen Jiabao said China is an advocate of free trade and opposed the idea of taking aggressive measures to force another country's currency to either depreciate or appreciate.

Facing mounting pressure from Western countries, relevant ministries have reportedly implemented a stress test over labor-intensive export-oriented industries, which bear the full brunt of yuan appreciation as their profitability has already been squeezed out by penny-pinching Western buyers.

Wang Qianjin, an analyst at Webtextile.com, said the average profit of the textile industry in China is around 3-4 percent. A 5-percent appreciation of the yuan—an increase that exceeded what a company could sustain and would force thousands of smaller factories to close—would mean 30 billion yuan ($4.39 billion) in profit losses for big textile companies, Wang said.