China's industry is working overtime

Economic growth of more than 9% a year and a currency locked to the declining dollar have worried other countries.

There are fears that China may overheat - or that credit controls intended to take the economy off the boil could slam on the brakes too sharply.

But Mr Hu said that would not happen, and promised "stable and fast growth".

"Basic stability" of the exchange rate was also guaranteed, he told the Asia Pacific Economic Co-operation summit in Chile.

Dollar peg

Current efforts to tighten credit so as to slow the breakneck pace of investment and spending are having some effect.

Industrial output grew 15.7% in the year to October, down from 23% in February, and inflation slowed to 4.3% - although retail sales are still booming.

The wildfire growth of the Chinese economy has been seen as both an opportunity and a threat.

For companies keen to penetrate a massive new market, the joint venture deals have been coming thick and fast.

But others fear that the peg keeping the yuan at 8.30 to the dollar means Chinese exports could soon price competitors out of the market.

Ahead of the US elections in November, accusations flew that China was - in effect - taking US jobs.

China has resisted revaluation to date, despite urgent calls from trading partners who see it has underpriced by as much as 40%.

Economists see the possibility of a 5% appreciation some time next year.

"We will gradually form a more flexible foreign exchange regime more adaptable to changes in market supply and demand," Mr Hu said.

On Tuesday, People's Bank of China deputy governor Li Ruogu told the Financial Times that foreign pressure would have no effect on China's decisions.

"China's custom is that we never blame others for our own problems," he said.

"The US has the reverse attitude: whenever they have a problem, they blame others."