There are now at least 200 million Chinese living below the United Nations definition of the poverty line. In other words, nearly one in seven Chinese nationals live in extremely reduced circumstances, earning less than US$1 per person daily.

This figure is ten times worse than the current Chinese official estimate of 20 million people earning subsistence level incomes of below 683 yuan yearly.

The vast underprivileged population is in striking contrast to China's overall economic advancement, concluded the first Beijing University forum on sustainable development of poverty-stricken areas.

In 1985, the poverty line was 200 yuan per annum - half the national average wage. Over the following two decades, this ratio dwindled.

The current subsistence level income standard is now only 20 per cent of the rural population's average yearly income of 3,255 yuan.

The forum also highlighted poverty elimination in China, now at a critical stage after a 20 years of constant effort.

Most impoverished people are scattered in regions with largely underdeveloped production capabilities, harsh natural environments, and a low quality labor force. They are economically marginalized and highly vulnerable to any possible misfortune.

Reputed Beijing University economics scholar Li Yi'ning attended the forum and says urbanization which shifts masses of surplus rural laborers into towns and cities is a feasible way to tackle the poverty problem.

Currently 37 per cent of China's 100 most cash-strapped villages still suffer from starvation. The basic necessity of food is yet to be secured in some areas plummeting below the poverty line.

In India, official statistics estimate 260 million Indians were living in poverty by the end of 2000, or 26 per cent of the total population.