The gap between rich and poor in China could prove a drag on the country's economic growth at a time when Beijing is saying that Chinese growth is important to support the global economy, a UN-sponsored report warned yesterday.

The China Institute for Reform and Development says the Chinese government, which last week unveiled a large stimulus package focused on roads, railways, airports and low-rent housing, must do more to provide basic public services to poor people and underdeveloped regions to sustain economic expansion.