China will be an even greater force in the world, says Blair
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Premier Wen Jiabao said China attached "great importance" to human rights - as UK prime minister Tony Blair was forced to defend his own record on them.
The two men met in London as contracts worth more than £1bn were signed for British companies in China.
Mr Wen, on a three-day visit, said his country's first priority was to provide food and a living for its 1.3bn people.
Meanwhile, Mr Blair was grilled by reporters about the treatment of Iraqi prisoners by British troops.
Food
The UK prime minister was asked how he could talk to China about human rights at a time of alleged abuses by the US-led coalition in Iraq.
Mr Blair said any claims of mistreatment of Iraqi prisoners by British troops were being investigated and would be tackled during a Commons statement by Defence Secretary Geoff Hoon on Monday.
During a press conference following their meeting, Mr Blair praised the political relationship between the UK and China as being in "even stronger and better shape than it has been for many decades".
He said there was no doubt that China will be "an even greater force in the world" because of the changes its government was making to the economy and in its relations with the outside world.
Hong Kong
The two leaders agreed to deepen cooperation on combating illegal immigration and practical measures to help prevent a repeat of the Morecombe Bay tragedy which claimed the lives of more than 20 Chinese cockle-pickers.
They discussed ways to combat the criminal gangs that profit from people smuggling and speeding up the return of illegal immigrants.
They also signed an agreement to maintain stability, prosperity and a degree of autonomy for Hong Kong.
Mr Blair said the two men would "continue to use human rights dialogue to raise issues of concern".
Mr Wen said: "The Chinese government attaches great importance to the respect of human rights."
The UK is Europe's largest investor in China and more than 170 Chinese companies invest in the UK.
Protests
It is Mr Wen's first state visit to the UK since he came to office in March last year and is part of a wider European trip.
He will also meet the Queen on Tuesday and is meeting top executives from British companies investing in China, including oil company BP.
Bill Rammell, who has responsibility for China in the Foreign Office, told BBC Radio 4's Today programme it was important Britain had a trade relationship with China, as it becomes the second biggest economy in the world in 15 years' time.
The visit has already prompted about 150 protesters from the Free Tibet movement and the Falun
Gong movement to gather outside the Chinese embassy in London.
Scotland Yard said there were no incidents and no arrests at the protest outside the embassy on Sunday, during which the campaigners waved a large Tibetan flag and meditated.
The 1999 visit to London by China's then-president, Jiang Zemin sparked complaints that police were too heavy-handed with demonstrators challenging China's human rights record.
Alison Reynolds, director of the Free Tibet Campaign, urged Mr Blair to be "at the forefront" in pushing forward dialogue on China's occupation of Tibet.