China's Wen defends low yuan amid int'l pressure for rise.

TOKYO, Oct. 7 Kyodo

Chinese Premier Wen Jiabao defended the level of the Chinese yuan in a meeting Tuesday with Japanese and South Korean counterparts despite global pressure against Beijing keeping the currency low, a Japanese official said.

''There are criticisms that the level of the Chinese yuan is putting the world under deflationary pressure and designed to promote our exports, but we have no such intentions,'' Wen was quoted as telling Japanese Prime Minister Junichiro Koizumi and South Korean President Roh Moo Hyun.

''The vigor of China's economic development comes from its abundant labor resources, and the benefit of Chinese success is being returned through many multilateral corporations operating in China,'' Wen also said.

The remarks were made as Wen discussed China's cooperation with the Association of Southeast Asian Nations (ASEAN) and appear aimed at addressing ASEAN concerns about cheap Chinese exports, the official said.

Koizumi responded by encouraging Beijing to continue addressing the matter, saying, ''The world is closely watching this issue. It is welcome that China has begun to consider this issue amid the world climate.''

Roh refrained from commenting and only said the exchange of views was fruitful, according to the official.

The three leaders met on the Indonesian resort island of Bali on the sidelines of the annual ASEAN summit and issued their first-ever joint statement, which centered on ''across-the-board and future-oriented'' cooperation in the economy, security and other areas.