China

March 2005 | Risk Summary

Speaking at the country's annual National People's Congress, Chinese Premier Wen Jiabao has said his country will introduce more measures to reduce inequality across the country. Despite strong agricultural growth in 2004, rural disposable incomes grew only 6.8%, compared with 7.7% in urban areas, where earnings are already three times higher. Wen said that inequality would be reduced by scrapping China's farm tax in 2006 - two years earlier than scheduled - and by more fiscal transfers to grain-producing regions. Since taking over as premier in 2002/3, Wen Jiabao has placed much greater emphasis on social issues, such as inequality

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