China's Wen says "substantial" govt investment needed

BEIJING (Reuters) - Chinese Premier Wen Jiabao said "substantial" government investment was needed to counter the global financial crisis, while urging a role for private investment in fighting what he warned may be greater hardship ahead.

Wen made the remarks on Wednesday, a day before he gives his annual work report to China's parliament, the official Xinhua news agency reported.

"Responding to the financial crisis requires substantial government investment, and at the same time we must take seriously guiding investment of social and private capital," Wen said. "Social and private capital" is a term used to refer to non-government investment.

Wen said the country should prepare itself for greater hardships. "We must make long-term mental preparations to respond to even greater hardships," he said.

(Reporting by Chris Buckley, Editing by Dean Yates)