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The system was designed to maintain social order, prevent and reduce crimes by reforming people who committed minor offenses but were not punishable by the penal code. It did play an important role in maintaining social order in specific periods, however, with the development of society and the legal system, its defects have become more and more evident.

Wen said the efforts to address the international financial crisis and the European debt crisis have helped the relationship between China and the EU to become more mature and stable.

Floods have occurred along several tributaries of the Yangtze River, China's longest river, on a dangerous scale during the current flood season, the report said, quoting Wu Daoxi, an official in charge of the Yangtze River flood and drought prevention office.

"Along with economic expansion, the country should make more efforts to improve people's livelihoods," he said.

China overtook Japan as holder of the world's largest forex reserves in 2006.