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China vows help for
rural poor
China's Premier has opened the National People's
Congress with a call to slow growth and help the rural
poor.
Wen Jiabao acknowledged that rapid industrial growth
had left millions in the countryside relatively worse
off.
The tax burden, he said, would shift from farmers,
with reforms elsewhere aimed at rebalancing the
economy.
BBC Beijing correspondent Louisa Lim says Mr Wen's
annual work report speech signalled a clear shift of
emphasis on economic issues.
Mr Wen also addressed the issue of Taiwan, restating
China's opposition to independence for the island, but,
in an overture of peace, also calling for renewed
talks.
On economic matters, the speech was unusually frank.
Mr Wen, in his first work report to China's parliament
since he assumed office a year ago, said that the
government was aware that some of its work fell short
of expectations.
Among the problems he listed was the slow growth of
incomes in the countryside, causing a rapidly-widening
wealth gap between the richer coasts and the troubled
hinterlands.
In addition, he said, people are complaining about the
cost of schooling and medical care.
"Solving the problems of agriculture, villages and
farmers is one of the most crucial parts of our entire
work," Mr Wen said as he made his nearly two-hour
speech to the 3,000 delegates with President Hu Jintao
and former President Jiang Zemin by his side.
Slowdown
Addressing the economy, he said his government aimed
to achieve 7% economic growth in 2004.
The downgrade from last year's breakneck 9.1% figure
indicates an attempt to head off rising discontent
from those left behind by China's economic boom.
A huge wealth gap is emerging between city and rural
populations
A shaky legal framework and banks over-burdened by bad
debts run up by state enterprises - as well as massive
over-investment in some industries - have contributed
to both the boom and the imbalance.
Restrictions on credit are part of the package of
measures Mr Wen is now mandating.
Farmers will see taxes cut a percentage point a year,
and scrapped entirely by 2009, he promised.
And agricultural investment would rise more than 20%
or about 30bn yuan ($3.6bn), along with a 10bn yuan
boost to direct subsidies to deal with sliding grain
production.
During the parliamentary session, the constitution
will be changed to allow private property ownership
for the first time since the Communist Revolution in
1949.
Leaders of the ruling party have already endorsed this
as essential for China's continued economic
development.
Our correspondent says that the expected changes to
property laws will mean that the Chinese Communist
Party is, it seems, Communist in name alone.
Owning property in China was once enough to get
landlords labelled as evil, our correspondent says.
But now the Chinese constitution is to be changed to
give more protection to private property, and those
once condemned as "capitalist running dogs" are being
welcomed into the party.
The congress is the first such meeting since China's
new leadership, under Mr Hu, came to power.
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