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Analysts say the size of the price hikes is largely in line with market expectations. Previous market estimates put the price hike between 400 yuan and 700 yuan per tonne.

The government will focus 2012 price reforms on electricity, oil, natural gas and water, he said, with more cost controls placed on power grid companies and differential prices introduced for residential power use this year.

But Europe must solve its own crisis and China expects the eurozone to send clear and positive signals to the world that it can tackle the situation, Wen said.

Temperatures in Xinjiang, Inner Mongolia and parts of northeast China will drop 4-6 degrees Celsius over the next two days, accompanied by strong winds and dust, according to the statement.

Another exercise dubbed "Cobra Gold" was recently wrapped up in east Thailand. The 10-day multinational military exercise was led by the U.S., with at least five other Asian nations, including Japan and the ROK, participating in the exercise.