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Wen Jiabao targets 7.5 per cent growth, backed by greater social spending and measures to boost domestic consumption.
Double-digit increase in defence budget likely to cause concern about the country's security build-up.
Latest military budget ends 20 years of double-digit spending increases.
Officials say 14.9 per cent rise in defence budget is "modest" and "unthreatening".
The change is unlikely to alter substantively the country's foreign policy.
The trilateral relationship was first proposed in 1998.
China has said it would consider giving support to Palestinian resistance group and new political power Hamas.
Benjamin Robertson in Beijing

Huawei Technologies Co Ltd, China

Chinese Foreign Minister Li Zhaoxing has begun a visit to Israel

China's government has made its most emphatic appeal yet to its public to end recent anti-Japanese protests that have sometimes turned violent.
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Featured on Al Jazeera
More than one-quarter of Gaza's population has been displaced, causing a humanitarian crisis.
Ministers and MPs caught on camera sleeping through important speeches have sparked criticism that they are not working.
Muslim charities claim discrimination after major UK banks began closing their accounts.
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
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