In a speech entitled "Enhance Cooperation to Make Win-win Progress" at the 2006 China-Europe business summit, Wen elaborated on China's strategy on energy.

Wen said the main thrust of China's energy strategy was to rely mainly on domestic supply, laying equal emphasis on conservation and development, while giving top priority to conservation.

The Premier added that China would promote technological progress and pursue a new path of industrialization to ease the shortage in energy supply.

"China is both a major energy consumer and a major energy producer," he said.

"Since the 1990s, China has always been able to meet over 90 percent of its total energy needs by itself," he added.

According to Wen, China was rich in coal resources. Two-thirds of China's hydropower remained untapped, and the use of renewable energy such as nuclear energy, wind energy, solar energy and biological gas had just started.

The Premier also said China would work even harder to save energy. Over the coming five years, China's per unit GDP energy consumption would be cut by 20 percent, he said.

"This is no easy task, but we are confident of meeting the goal," he said. In the meantime, China was also actively seeking international cooperation to jointly safeguard global energy security, he added.

The 2006 China-Europe business summit was held here on Tuesday. Some 500 senior business leaders attended the summit to discuss strategies for boosting economic and technological cooperation between China and the European Union.