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The cuts came after recent data showed that prices have fallen across the Chinese economy, with the consumer price index (CPI), the main gauge of inflation, rising by a 29-month low of 2.2 percent in June from a year earlier.

The international financial crisis does not change the basic fact that the Chinese and European economies are highly complementary, Wen said.

However, the percentage of Chinese urban residents (63 percent) who were satisfied with the air quality was significantly less than that of rural counterparts (87 percent), indicating that air pollution is much worse in the urban areas. Seventy-eight of rural residents were satisfied with water quality, compared to 67 percent in urban areas, the poll said.

The accident happened on a section of the Baotou-Maoming expressway, linking northern China's Inner Mongolia Autonomous Region and Guangdong Province in the south, in Ansai County in the city of Yan'an at around 2 a.m. on Aug. 26 when a double-decker sleeper bus carrying 39 people crashed into a methanol-loaded tanker and caught fire.

Xu said that these problems have led to higher product procurement costs, which have not only hampered the growth of the industry, but have also added to consumer spending on medicine.