The gap between rich and poor in China could prove a drag on the country's economic growth at a time when Beijing is saying that Chinese growth is important to support the global economy, a UN-sponsored report warned yesterday.
The China Institute for Reform and Development says the Chinese government, which last week unveiled a large stimulus package focused on roads, railways, airports and low-rent housing, must do more to provide basic public services to poor people and underdeveloped regions to sustain economic expansion.
Its report was issued a day after the Hu Jintao, China's president, assured other world leaders at the G20 summit in Washington that his country's growth was an “important contribution” to the flagging world economy.
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