At the opening of the annual National People's Congress (NPC) session, Premier Li Keqiang gave a growth target of 6.0-6.5 percent, compared with about 6.5 percent last year, and said  billions of dollars of cuts in taxes and fees will be delivered to shore up an economy growing at its slowest pace in almost 30 years.

Chinese financial markets, including currency, stocks and bonds, barely moved on the announcements, which were largely in line with expectations.

Prior to market opening, the People's Bank of China (PBOC) set the yuan midpoint rate at 6.6998 per dollar, 51 pips or 0.08 percent firmer than the previous fix of 6.7049.

The onshore spot yuan opened at 6.7055 per dollar and was changing hands at 6.7023 at 0529 GMT, 78 pips firmer than the previous late session close.

A trader at a Chinese bank said the yuan was likely to stay around the 6.7 per dollar level for some time before its direction became clear.

Another trader noted that the yuan is "usually very stable" during the NPC meetings every March.  This year, he added, the market will be looking "for any solid progress in the Sino-U.S. trade negotiations".

Chinese authorities usually keep the currency stable during major economic and political events.

In the work report to the NPC, the government reiterated that it would maintain the yuan's basic stability and keep it at a "reasonable" level this year.

Ken Cheung, senior Asian FX strategist at Mizuho Bank in Hong Kong, said China "could manage to preserve RMB stability in response to (U.S. President Donald) Trump's request to include RMB stability into the potential trade deal".

He said he is maintaining his call for a stable yuan this year, targeting 6.68 per dollar at year-end.

Frances Cheung, head of macro strategy at Westpac, said the equilibrium levels should not be static.

"As such, a 'stable yuan' does not automatically translate into RMB strength," she said.

That view was more or less backed the country's state planner, who said in a separate report that China will increase flexibility in the yuan this year.

Chinese Commerce Minister Zhong Shan told media on Tuesday that trade talks with the United States have been difficult but that working teams from both countries are continuing with their negotiations.

On Monday, U.S. Secretary of State Mike Pompeo said he thought the two nations were "on the cusp" of a deal to end their trade war.

The offshore yuan was trading at 6.7033 per dollar as of 0529 GMT.