"The Chinese government has pledged not to devalue the yuan because it is in our commercial interest," the newspaper quoted vice-trade Minister Long Yongtu as saying.

"It is not at all motivated by political concerns."

China has repeatedly pledged it would not devalue its currency and highlighted its stance as its contribution to Financial stability in beleaguered Asia.

Some analysts have said China expects to be rewarded for its resolve on the yuan with easier entry to the World Trade Organisation or other favours.

Long told a seminar in Beijing that there had been calls for a devaluation of the yuan from domestic exporters in light of slowing export growth, but that allowing the yuan to weaken would have "little positive impact" on exports.

Foreign investment had in recent years surpassed exports in importance to China, with exports from foreign-invested firms accounting for 41 percent of total exports. A stable currency was thus critical to attract foreign investment, he said.

Long also stressed that process trade -- in which China imports materials and components for assembly and re-export -- had in the first half of this year accounted for 54.9 percent of Chinese exports, up from 44.5 percent in 1997.

A weaker yuan would be self-defeating because it would raise the cost of inputs and cancel out much of the competitive benefit of devaluation, he said.

Export growth of a year-on-year 10 percent was an appropriate target given the severity of the Asian Financial crisis and its impact on China's exports to the region, the newspaper quoted Long as saying.

China's exports grew a year-on-year 7.6 percent in the first half of this year, down from 20 percent annual growth in 1997.