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Chinese Prime Minister Wen Jiabao has told his Japanese counterpart Naoto Kan that a disputed stretch of islands in the East China Sea belonged to China, state media said.
Chinese Premier Wen Jiabao threatened more steps against Japan unless it releases a trawler captain Tokyo accuses of deliberating colliding with a Japanese coastguard ship near disputed islands.
Prime Minister Wen Jiabao said that China could expand social spending and pour money into strategic industries while still meeting its 8 percent economic growth target.