Premier Wen Jiabao answered a broad range of questions during a press conference on Sunday after the closing meeting of the national legislature's annual session at the Great Hall of the People in Beijing.

I will be committed to my work in next three years

The development road of China will be bumpy and even thorny in the next few years, Premier Wen Jiabao told the press conference.

He called for unslackened efforts to tackle difficulties, saying "we must have firm confidence."

"No matter how high a mountain is, one can always ascend to the top. The only way out and hope when facing difficulties lies in our own efforts," Wen said.

The premier said he loves China deeply and will be committed to his work during the next three years.

I have a strong wish to visit Taiwan

Premier Wen Jiabao said he still has a strong wish to visit Taiwan in the future.

At the press conference in Beijing, Wen said that some media in Taiwan selectively reported his remarks over the negotiation of economic cooperation framework agreement (ECFA) between the mainland and Taiwan.

"I did say we will make Taiwan to benefit more from the agreement, but I also said we are brothers. The second half received little coverage in Taiwan."

Yuan appreciated 14.5% in last two years

Chinese yuan is "not undervalued", Premier Wen Jiabao told a press conference Sunday after the closing meeting of the national legislature's annual session at the Great Hall of the People.

Wen said China's real effective exchange rate appreciated 14.5 percent between July 2008 and February 2009, the worst time of the world economy.

During this period, China's exports fell by 16 percent but imports only dropped 11 percent and its trade surplus decreased $102 billion.

He said keeping the yuan exchange rate basically stable had played an important role in facilitating the recovery of the global economy from the worst financial crisis in decades.

Wen said since China began its currency reform to unpeg the yuan against the US dollar in July 2005, the yuan has appreciated 21 percent against the US dollar, or 16 percent in real terms.

Wen said China opposes accusations and even forceful measures that press for yuan appreciation, which will not benefit the exchange rate reform.

"A country's exchange rate policy and its exchange rates should depend on its national economy and economic situation," Wen said.

"We support free trade, which will keep the economy going and bring harmony and peace to people," he said.

Despite pressures on yuan appreciation, the premier said China will further improve the yuan exchange rate formation mechanism and keep the yuan exchange rates basically stable at a reasonable and balanced level.

Wen said a stable yuan has played an important role in facilitating the recovery of the global economy from the worst financial crisis in decades.

China, which overtook Germany as the world's biggest exporter at the end of 2009, is under increasing criticism for devaluating the renminbi, or its currency yuan, to earn artificial price advantages.

On March 11, US President Barack Obama pressed China to embrace a "market-oriented" exchange rate for yuan, saying the move is "an essential contribution to that global rebalancing effort."

Economic structure adjustment top priority

Adjusting China's economic structure and transforming economic growth pattern will be top priorities for the nation, Premier Wen Jiabao said.

He said China should address the issues of regional imbalances and a lack of coordination and sustainability in economic development.

China must work hard to gain good balances between stable economic development, structure adjustment and inflation management, he said, before adding that it will be a long and arduous process, which has been aggravated by the international financial crisis.

China welcomes foreign companies

China will stick unswervingly to its reform and opening-up policy and welcomes foreign companies' investments, Premier Wen Jiabao said.

He said China will increase efforts to attract foreign investments and give high priority to the introduction of advanced foreign technologies and modern management practices.

China also hopes more foreign research and development (R&D) centers will be established in China, so that foreign capital can be utilized more effectively and efficiently, he said.

Wen also promised fair treatment to all lawfully operated foreign companies, stating that China will provide a fair environment to foreign businesses. He added that he will spend more time meeting with foreign businesspeople and will listen to their views to improve the investment environment.

Chinese economy faces uncertainties

China's economy cannot develop without the context of the broader global environment, and the recovery of many Chinese companies is mainly backed by the government's supportive policies, Chinese Premier Wen Jiabao said.

The economy is complicated by a lot of uncertain factors, although the world is generally recovering, the main problems of the global economy still exist, Wen said.

"The unemployment rate of the world's main economy is still high, some countries' debt crises are still deepening, and the world's commodity prices and exchange rates are not stable, which are most likely to become the cause of any setback in the economic recovery," he said.

"The shock of the global economic crisis on the Chinese economy in some degree imposed on our development model, which cannot be changed in a short time and needs our constant efforts," he said.

"We must put transforming our economic development model and adjusting our economic structure in a very important place to change the unbalanced development of China's economy," Wen said.

Premier Wen a staunch advocate of free trade

Chinese Premier Wen Jiabao said that he's a staunch supporter of free trade, in response to a question about China's stand towards increasing protectionist measures against China's exports.

Wen said he sincerely hoped that the US and Europe would acknowledge China's market economy status and lift bans on high-tech exports to China.

He said although China had become the largest exporter, 50 percent of its exports were processing trade and 60 percent of China's exports were generated from foreign enterprises or joint ventures. So trade protectionism also had a negative impact on foreign companies, he added.

China faces multiple goals

Chinese Premier Wen Jiabao said today that China is under pressure to maintain its economic growth while also controlling the inflation.

"Inflation, unfair income distribution and corruption affect the social stability, even the State's power," he said.

Wen admitted that it is a very difficult task to deal with the relationships among economic growth, economic structure adjustment and efforts to control inflation. China will ensure that policies are better targeted and flexible, he said.

"China will continue to implement a proactive fiscal policy and a moderately easy monetary policy in 2010," Wen said.

China gives high priority to agriculture development and will make every effort to ensure a bumper harvest, since agriculture is the lifeline of the whole economy, he said.

Diversity should not impede mutual respect

In answering a question about how the public opinions affect China's foreign diplomacy, Chinese Premier Wen Jiabao said that the Chinese people had suffered too deep in modern times and they feel strongly about national independence and sovereignty.

Wen said at the news conference that the cultural diversities and difference of social systems should not impede the mutual respect among different counties. "A county can prosper only by being open and inclusive."

China's foreign policy will continue to protect the national interest, sovereignty and territorial integrity.

China endeavors great efforts in climate change

Premier Wen Jiabao denied the accusations that China acted arrogantly during the Copenhagen climate talks last year.

Wen said he learned that China was on an invitation to attend a small-group meeting with state leaders including US President Barack Obama, but he and the Chinese delegation was not actually invited.

Despite being uninvited, Chinese vice foreign minster He Yafei was sent to attend the meeting, but President Obama had not arrived yet.

Wen said "I almost didn't sleep during 60 hours' stay in Copenhagen and meet many state leaders, including discussion with Obama twice."

"China has made great efforts during the conference," Wen said.

Even when leaders began to leave the conference as the meeting was in difficulty, China was still making efforts to help reach an agreement and best resulted.

Five problems in HK economic development

Premier Wen Jiabao said on Sunday in Beijing that there are five deep-rooted problems Hong Kong faces in its economic development.

First, how to fully display its existing advantages to further strengthen its status as a fincianl, trade and shipping center.

Second, to develop its competitive industries, especially the service sector , with its own characteristics.

Third, to fully make use of its geographical advantage to strengthen its ties with the Pearl River Delta and the mainland at large. The huge domestic demand in manliand market is a strong source of potential for Hong Kong's development.

Forth, the Hong Kong people should to work together to maintain prosperity and stability.

Fifth, people's livelihood issues should be concerned about.

Wen said the 12th five-year plan is based on the planning of nationwide economic development, but the government would take consideration of the economic ties between the mainland and Hong Kong.

The premier said he is full of energy despite years of hard work. "I have no holidays, but I love taking a stroll and swimming when I have time to keep myself energetic,"he said.

Wen urges US to observe three joint communiqués

Premier Wen Jiabao urged the United States to strictly observe three Sino-US joint communiques for a better bilateral relationship.

Wen said the bilateral ties between China and the United States witnessed a good beginning after US President Barack Obama took office.

But the meeting between Obama and the Dalai Lama severly violated Chinese sovereignty. China is not responsible for the latest frictions, Wen said.

Wen said Sino-US relation is one of the most important foreign ties for China, for it not only concerns the two countries and peoples, but also goes beyond the bilateral scope.

Wen urge the United States to strictly observe three Sino-US joint communiques

The past 30 years of Sino-US ties proves that dialogue and cooperation benefit the two nations, confrontation and sanctions hurt both.