China is striving to bring most provinces and regions into a poverty relief network before the end of the year, a senior leader said yesterday.

According to Minister of Civil Affairs Li Xueju, who made the remark at the Mid-year Analytic Conference of the Ministry of Civil Affairs, as of the end of last year, the number of rural residents living in poverty stood at 26.1 million.

In addition, 49.8 million rural residents with comparatively low incomes could easily slip into poverty in the face of sudden difficulties such as natural disasters or illness.

In urban areas, around 22 million residents live on minimum allowances provided by local governments.

The minister said China has vowed to set up a basic social relief framework for the poor in 90 percent of its provinces and 70 percent of its counties by the end of this year. Pension benefits will also be raised.

Li added that central finance has allocated 7.46 billion yuan (US$901 million) for pensions, 3.53 billion yuan (US$426 million) more than last year.

Speaking at the annual conference of the Foundation Chinese Association of Poverty Alleviation and Development held in Beijing from May 27 to 28, Minister of Commerce Bo Xilai said using the international average income of US$1 per day, 90 million Chinese still live below the poverty line, earning an average per capita annual income of less than 924 yuan (US$112).

The network consists of an allowance system for laid-off workers, a disaster relief system, assistance for impoverished rural residents and other aid in the areas of health care, education, housing and legal affairs.

Yesterday was also the opening of the 10th Standing Committee Session of the National Committee of the Chinese People's Political Consultative Conference in Beijing. State Councilor Zhou Yongkang, speaking at the event, warned that the income gap between the haves and have-nots is widening. "A social security system is not fully in place, and the discrepancy in wealth creates unstable factors to our society," he added.

Minister Li said that in the first half of this year, the Chinese government dispensed more than 1.8 billion yuan (US$219 million) for disaster relief and provided assistance to 45.5 million disaster-stricken citizens.

(China Daily, China.org.cn July 6, 2005)