China's top economic official said 2010 will be the "most complicated" year for the country's economy and indicated easy credit will continue despite a recent tightening in lending controls. He gave no indication Beijing is ready to raise interest rates, which might slow growth and affect the global economy by cutting China's demand for foreign oil and other goods.

China's leaders have been carefully reaching out to the world's largest online population with online chats. This one comes just days before the country's annual meeting of the National People's Congress.

"Two things can hurt social stability. One is corruption.

The other is the price of products," Wen said, adding that the government should be able to regulate both.

"We can keep economic development stable and fast and still manage inflation," he said.

China's economic growth rebounded last year to 10.7 percent with the help of a massive stimulus package and easy bank lending, but the country's leaders worry the money is fueling inflation and a dangerous bubble in real estate prices.

Inflation eased in January to 1.5 percent over a year earlier, down from December's 1.9 percent. But China's leaders are sensitive to price rises that erode families' economic gains and could fuel social tensions.

Housing costs have soared, jumping 9.5 percent in January from a year earlier, according to the government.

The government has issued directives to banks in recent weeks to fine-tune lending by cutting back credit to projects deemed polluting or unneeded while expanding support to private entrepreneurs.

If last year was the most difficult for China's economy in the new century, this one is the "most complicated," Wen said.

The chat, with video, was carried on the websites of China's central government and the state-run Xinhua News Agency.

Wen didn't go into political issues but he briefly mentioned recent economic disputes with the US over higher duties on imports of Chinese-made tires, and access to each other's markets for steel pipes.

"The friction ought to be solved through negotiation on an equal basis," not through quickly imposed sanctions, he said.

"We hope the friction will calm," he added.

Chinese citizens posted hundreds of thousands of questions online for Wen, who is well-known for his sympathetic public appearances, especially in times of crisis.

Wen stuck to topics of widespread public outrage, such as what one netizen called the "wild horse" of rising property prices.

He said the government will build 5 million affordable housing units this year.

He also spoke out sharply about China's latest food safety problem - the recent reappearance on the market of some tainted milk products that sickened at least 300,000 children in 2008.

"If counterfeit and substandard products appear again, we will punish without mercy," he said.