China's Premier Wen Jiabao has announced a US$10 billion concessional loan for underdeveloped countries.

China will grant some underdeveloped countries the loans to help them with their economic development and poverty alleviation.

China's Foreign Ministry Spokesman Qin Gang says the country will have consultations through multilateral channels.

Qin also said, "We hope the countries still with so-called 'diplomatic relations' with Taiwan can have a clear vision of the situation and make a wise decision in conformity with the trend of time. We are willing to develop normal state-to-state relations with them on the basis of the UN Charter and the five principles of peaceful coexistence. But an important political premise is recognizing and pursuing the one China principle. This is what China is concerned about."

The countries to receive the loans have yet to be announced.