He said that India had "aspired for a long period of time to be the main power of South Asia," and was fully responsible for current regional tensions.

The Chinese president levelled accusations at India of "targeting" China - a long-standing ally of Pakistan - with its nuclear tests.

Mr Jiang denied Indian allegations that China had helped Pakistan develop its nuclear weapons.

He said co-operation was entirely for peaceful ends and conformed with all international accords on the subject.

Rumours circulating

India's tests in May, followed two weeks later by Pakistan caused widespread international concern, highlighted by a wild rumour on the Tokyo stock market that China had conducted a nuclear test.

A senior Chinese Foreign Ministry official said on Tuesday that Beijing could not rule out the possibility of resuming nuclear testing if the nuclear arms race between India and Pakistan intensified.

He stressed that while China had signed the Comprehensive Nuclear Test Ban Treaty, he noted that it would be within its rights to begin testing again by citing supreme national interest.

Mr Jiang's statement putting Beijing's policy on the record was made in an interview with the chairman of AFP news agency, Jean Miot.

China staged its last nuclear test in 1996. Later the same year, China signed the Comprehensive Test Ban Treaty, which India and Pakistan have both so far rejected.

Mr Jiang also made comments about China's economy in the wake of the Asian financial crisis.