Hitting the Chinese embassy is highly damaging for Nato.

It comes at a time when China's support in the UN Security Council is crucial for the success of the emerging diplomatic initiative that came from the recent G8 meeting of foreign ministers.

What happened is unclear.

Nato said it deeply regretted any mistake but it seems most likely the missiles were intended to hit the nearby Hotel Yugoslavia which the alliance says is being used as accommodation for Arkan's Tigers.

The Tigers are a paramilitary group blamed for ethnic cleansing in Kosovo.

Heavy attacks

It was part of very heavy attacks on targets in and around Belgrade, including another of President Milosevic' residences.

Nato says underground bunkers there were being used as a principle command centre for the army.

Other targets in Belgrade included headquarters buildings for the Ministry of Defence, Interior and Army.

So-called soft bombs were used again to temporarily short circuit the Serb electricity system during the air raids.