The government will promote strategic emerging industries and the use of new energy sources, said Wen, while stressing that it will also put an end to blind expansion in industries such as solar energy and wind power.

In 2011, waning external demand due to the sluggish U.S. and European economies, a steep rise in production costs and difficulty securing financing have combined to create problems for many Chinese companies.

"We will implement and improve policies to promote the growth of small and micro businesses, further reduce burdens on enterprises, and promote the vibrant growth of small and micro high-tech enterprises," Wen said.

The government will enhance balanced economic development among regions and "actively yet prudently" promote urbanization, according to the premier.

In China's urbanization drive, inequality in resource allocation discourages many migrant workers from settling in certain areas and cities.

"We will give higher priority to registering rural migrant workers with stable jobs and permanent homes in cities or towns as permanent urban residents in an orderly manner," Wen said.