Chinese Vice Premier Wu Yi stressed on Thursday that China will adhere to the central task of economic development and full commitment to domestic development.

"This is decided by China's national conditions and it reflects the common desire of all Chinese ethnic groups," Wu said at the first China-U.S. Strategic Economic Dialogue that opened earlier on Thursday.

In a key-note speech titled "China's Development Road", Wu said China's economic aggregate ranked fourth worldwide in 2005, but its per capita GDP was only 1,700 U.S. dollars, placed below the 100th in the world.

"To change the underdeveloped productivity remains a long-term and arduous historic task for China," said Wu.

She said calculated at an annual average growth rate of 7-8 percent and taking population growth into account, even if by 2020,China's per capita GDP approached 4,500 U.S. dollars, she would still lag behind the 1999 average level of 4,900 dollars in high- and mid-income countries.

"Only by focusing on development in the long run can China lay a necessary material foundation for the constant improvement of the people's living standard," said Wu.

About one-fourth of China's population are not living a well-off life, mainly concentrated in the rural areas and central and western regions. According to China's poverty standard, there are still over 23 million impoverished people in the countryside, while according to the World Bank standard (namely daily consumption less than 1 U.S. dollar), there are as many as 150 million Chinese people living in poverty. Furthermore, there are 82.96 million handicapped people in China, according to latest statistics.

Wu also pointed out that China's industrialization and urbanization are far from being completed, saying at present, the proportion of China's rural labor to total employment is still much higher than those in industrialized countries and in some developing ones.

In 2005, China's urban and rural employed population totaled 758 million. It is estimated that 300 million people will migrate from the rural areas within the coming two decades.

Over the next 10-odd years, China will witness 8 to 10 million newly increased population every year. Wu said under the current economic structure, if an 8 percent economic growth rate is sustained, China will create over 10 million jobs, including supplement to natural job-cuts.

"Confronted with such a huge challenge, it is imperative that China commit herself to accelerating economic development, properly handle contradictions that have emerged and might appear, and gradually realize the smooth transformation from the urban-rural dual economic structure to a modern economic mix," said Wu.

Wu stressed that China's development presents an arduous task but has a promising future.

From 1979 to 2005, China's GDP had grown at an annual average rate of 9.6 percent and such a rapid growth momentum will be sustained for the next 15 years, Wu said, adding China has huge market demand, a relatively high residents' savings rate and abundant labor resources with ever-increasing quality

"China will uphold the scientific concept of development featuring people-oriented, comprehensive, harmonious and sustainable development, and strike a proper balance between urban and rural development, development among different regions, economic and social development, development of man and nature, and domestic development and opening up to the outside world," said Wu.

Wu and U.S. Treasury Secretary Henry Paulson co-chaired the dialogue as special representatives of President Hu Jintao and President George W. Bush.

The two-day dialogue, the highest-level among the existing China-U.S. dialogue and consultation mechanisms, is aimed at examining long-term strategic issues in bilateral trade relationship.