China pursues a national defense policy of self-defense, and its limited increase of military expenditure is mainly used to improve the living conditions of officers and soldiers and improve self-defense capability, said Chinese Premier Wen Jiabao Tuesday.

The country's defense policy is transparent, said Wen, adding that China has never dispatched even one soldier abroad except its peacekeepers, and has not occupied one inch of foreign land.

Wen made the remarks while meeting with the press following the conclusion of the annual full session of the Chinese legislature, the Tenth National People's Congress.

The Chinese premier said China sticks to a road of peaceful development, which primarily results from China's traditional culture, development needs and national interests, emphasizing that China is already "a responsible country" of the international community.

Wen added that through reform and development, China has successfully solved the problem of feeding 1.3 billion people and lifting 200 million out of poverty.

After years of efforts, China has found a more scientific development road, which stresses the resources conservation and environmental protection, he said.

China firmly carries out an independent foreign policy of peace, and is willing to develop good-neighbourly relationships with surrounding countries, he said.

China has taken part in over 100 international organizations and signed nearly 300 international treaties, and is ready to work shoulder by shoulder with the international community for the establishment of a new international political and economic order.

The premier said China is a country that firmly safeguard world peace, and resolutely oppose terrorism and nuclear proliferation.

After China's entry in the World Trade Organization, the country has faithfully fulfilled its commitments, the premier said.

Despite the fact that China is still a developing country, it has played an active role in implementing the millennium goal of the United Nations, said the premier, adding that China has reduced 20 billion RMB yuan of debts for 44 underdeveloped nations, and in the forthcoming three years, China is scheduled to provide 10 billion U.S. dollars of favorable loans for world's underdeveloped countries.