Jiang told visiting former Japanese prime minister HidekiKaifu that China was doing its part for the region and urged Japan to do likewise, the agency said.

"With an overall view towards stabilising the regional economy, China is firmly maintaining its policy of not devaluing the yuan," Jiang was quoted as saying.

"We hope that Japan will do what it should to contribute to the resolution of the region's economic difficulties."

Jiang told Kaifu China was confident it could overcome this summer's devastating floods and achieve its economic growth target of 8.0 per cent for this year.

Kaifu, Japan's prime minister from 1989-91, expressed understanding for Jiang's decision to postpone this month's planned Japan visit to cope with the floods, Xinhua said.

China has seldom missed an opportunity this year tourge Japan to get its economic house in order and keep the yen from weakening in order to help Asia recover from its economic crisis.

A steep fall in the yen would make it difficult for China to maintain the stability of its currency, Chinese officials have warned.

Beijing has touted its no-devaluation policy as a sign it is willing to play a leadership role in Asia by sacrificing the interests of its export sector for the sake of regional recovery and stability.

Many economists say there is no significant link between the Japanese yen and the Chinese yuan and argue that avoiding a devaluation is entirely in China's interest.