Mr Mandela was speaking at Beijing University on the second day of a state visit to China - the first such visit by a South African head of state.

"The interdependence of our economies and a global economic system ... sees a widening gap between the richer and poorer parts of humanity," Mr Mandela said.

"We must ensure that globalisation benefits not only the powerful but also ... those whose lives are ravaged by poverty," he said.

He also spoke out against what he called the "marginalisation of Africa", and made an impassioned call for closer ties between Asia and Africa.

Mr Mandela was given a standing ovation as he began what he said could be his last speech to a university from which he holds an honorary degree before his retirement.

Nato criticised

He said international institutions must better reflect the needs of developing nations, warning that Nato's bypassing of the United Nations over the Kosovo crisis risked damaging the world body.

He said both Nato's behaviour and the phenomenon of ethnic cleansing in Kosovo were deeply disturbing, and must be "condemned in the strongest terms".

The speech was the key address of a visit designed to strengthen a diplomatic relationship only established last year, and the applause he received characterised the tone of the visit.

The president of the university spoke of China's deep admiration for Mr Mandela, not only for his struggle for freedom, but also for his decision to switch diplomatic ties from Taiwan - an old ally of the apartheid regime - to Beijing, 18 months ago.

Jiang honoured

During his trip to China, President Mandela has conferred South Africa's highest honour, the Order of Good Hope, on Chinese President Jiang Zemin.

Both sides have spoken of new economic opportunities as they seek to build on the rapid growth in bilateral trade, currently worth around $3bn each year.

President Mandela has so far avoided criticism of China's human rights record.