China's military is transparent and not a threat, Chinese Premier Wen Jiabao said on Monday after the United States and Japan criticised China for not being open enough about a build-up of its defence forces.

During a visit to Australia on Monday, Wen said China had reduced its military by 1.7 million over the past two decades, and its military spending as a share of the gross domestic product and the government budget was fairly low by international standards.

"The modest increase in Chinese military expenditure is mainly for improving the welfare of its servicemen, strengthening its defence capabilities and safeguarding national reunification," Wen told a lunch meeting in Canberra.

"Thus China will not pose a threat to anyone. China's defence policy is transparent," he said. U.S. Secretary of State Condoleezza Rice and Japanese Foreign Minister Taro Aso both recently expressed concern about China's military build-up.