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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
The author argues that in the new economy, it's people, not skills or majors, that have lost value.
Colleagues of detained Al Jazeera journalists press demands for their release, 100 days after their arrest in Egypt.
Mehdi Hasan discusses online freedoms and the potential of the web with Wikipedia founder Jimmy Wales.
A tight race seems likely as 814 million voters elect leaders in world's largest democracy next week.
 
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Three years since the start of the uprising, nine million people have been displaced by fighting.
An in-depth look at Egypt's ongoing political crisis.