While most people know the stunning success story of China's economic growth, there is far less familiarity with the data on the growing gap between city and rural dwellers and the shocking lack of financial services for small businesses, both urban and rural. Along with the negative data, there are positive solutions.

Since its opening-up, China has led the world with average annual growth of 9.6 percent from 1979 to 2005.

With foreign trade increasing by 17 percent every year, China is now the third largest trader worldwide.

More than 200 million people have been brought out of poverty.

The central government has just designed guidelines to facilitate sustainable development and promote social harmony, but the plan is held back by harsh facts.

In 2005, the per capita gross domestic product (GDP) was $1,730 for China, a mere 4 percent of that for the United States, $42,100 the same year.

The income disparity has been increasing in recent years. The average income of urban dwellers was 2.6 times that of rural dwellers in 1978 and the figure increased to 3.2 in 2005. The Gini coefficient, an index measuring income inequality, has reached 0.45, indicating a severe inequality in income distribution.

The social welfare system in rural areas cannot cover residents' medical care or old-age pensions. The social security fund for urban citizens also shows remarkable deficits.

Many people, especially those living in rural areas, are living on ultra low incomes, part of the ever-increasing income gap. They cannot afford family medical care or education for their children. They do not have the luxury of selecting jobs, such as refusing to work under dangerous conditions.

It is, therefore, the primary task of the government to bridge the gap between the rich and the poor as well as to encourage the continuing economic boom to generate more material wealth.

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