China aims to reduce gap between rich, poor

China's premier said Friday the government would do more to spur growth of the world's third-largest economy, share the wealth to narrow the gap between rich and poor and boost development in restive regions.

Wen Jiabao made his pronouncements during the annual session in Beijing of the National People's Congress, a largely ceremonial parliament in the non-democratic country, which provides the government an opportunity to speak directly about its plans.

"Everything we do, we do to ensure that the people live a happier life with more dignity and to make our society fairer and more harmonious," Wen told the nearly 3,000 deputies gathered in the Great Hall of the People for the opening of the Congress.

China's economy is the third-largest in the world, behind only the United States and Japan, but in recent years the country has faced protests among farmers and blue collar workers angered by land seizures and unpaid wages.

The annual policy speech gave Wen an opportunity to address concerns that have led to social unrest in the country, while outlining the latest budget projections.

Wen said government spending is projected to rise by 11 per cent to 8.45 trillion yuan for 2010, down from the sizable 21 per cent increase in 2009, a sign that China is beginning to ease away from infrastructure spending aimed at spurring the economy during last year's global economic downturn.

'Very complex situation': Wen

"This is a crucial year for continuing to deal with the global financial crisis," Wen said in the two-hour speech. "We still face a very complex situation."

The government will issue more funds for social programs, however, outlaying bigger budgets for education, health care, social security and low-income housing. Defence spending was increased by only 7.5 per cent, its lowest increase in more than 20 years.

Though he did not mention anti-government protests by Tibetans and ethnic fighting between Muslim Uighurs and China's Han majority, he said more effort would be made to raise living standards for ethnic minorities.

"We need to take a clear-cut stand against attempts to split the nation, safeguard national unity, and get ethnic minorities and the people of all ethnic groups who live in ethnic minority areas to feel the warmth of the motherland as one large family," Wen said.

The speech Friday took place amid heavy security in Beijing this week to prevent disruptions, and more than two dozen people were bundled into a police bus and driven away in recent days.