Zeng, the latest in a series of senior Chinese officials to underscore Beijing's pledge not to devalue its currency, said devaluation offered no remedy for a collapse in exports to Asian countries stricken by financial crisis.

"Exports to Japan and South Korea have decreased because their demand had declined, so a devaluation of the yuan will not help exports to those countries," he told reporters.

Zeng said the high contribution of imported input in China's exports of processed goods would make a devaluation self-defeating.

"China at present has no need to devalue its currency," he said. Zeng toldreporters he was confident China could meet its target of 8.0 per cent growth in gross domestic product (GDP) through increased government pump-priming measures.

"The eight per cent target for this year is attainable," he said. To meet the 1998 target, China would need an annual increase in fixed asset investment of 15-18 per cent this year, Zeng said.

"Only if overall fixed asset investment grows by 15-18 per cent can we reach 8.0 per cent economic growth," he said, referring to investments by both state and non-state sectors.

Fixed asset investment by China's state sector rose a year-on-year 17.4 per cent in the January-August period to hit 894.3 billion yuan ($107.74 billion), he said, repeating figures unveiled on September 13. State sector fixed asset investment in August alone hit 158.1 billion yuan, a rise of 26.9 per cent from a year earlier, the state statistical bureau said.