China’s Wen Jiabao says ‘reforms urgent’

As he began the news conference, he was visibly emotional, saying that he was ”sorry” for economic and social problems in the last decade.

As the leader of the country, he said, he ”should assume responsibility” for the problems in the country during his time in office.

“There is still room for improvement in my work,” said the leader who is heading into his last year as premier.

Premier Wen is often referred to as “Grandpa Wen” in China, says the BBC’s Martin Patience in Beijing.

He is seen as the people’s champion and is known – in public at least – for his humility, says our correspondent.

In the three-hour news conference, he addressed questions ranging from domestic issues such as housing prices and the controversial incident involving senior Chongqing policeman Wang Lijun.

Mr Wang, who spent a day at the US consulate in southwest China, sparking speculation he was seeking asylum, was removed from his post and was said to be on leave because of “stress”.

Mr Wen said local authorities must ”seriously” reflect and learn from the incident. Beijing regarded this ”very seriously” and progress has been made in ongoing investigations, he added.

On US-China trade, he said he would like to expand US imports and increase two-way investments.

On cross-straits relations with Taiwan, he said that he was pleased with the progress, but would like to see stronger economic ties, including encouraging banks in China and Taiwan to invest in each other.

On the Chinese currency, he said that the yuan may be nearing an ”equilibrium” and pledged to allow the yuan to float more freely as part of its efforts to reform its currency policy.

At the conclusion of the parliament session earlier, lawmakers voted on government work reports and budgets and passed amendments to the Criminal Procedure Law that sets out police powers to detain dissidents.

The official Xinhua news agency reported that the Chinese parliament adopted the country’s plan for national economic and social development and the budget.

The changes to the criminal law that some critics say could legalise secret detention was passed with a vast majority of some 3,000 delegates voting for in favour. Others say the revisions would limit the police’s power to carry out such detentions.

This law follows a spate of detentions of high-profile dissidents last year.