(Adds comments, background)
BEIJING, March 5 (Reuters) - Chinese Premier Wen Jiabao said substantial government spending 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.
In his comments to members of a political advisory council, Wen did not say whether his work report will spell out any additional stimulus spending on top of a 4 trillion yuan ($585 billion) package. But he made clear that government spending was key to economic recovery plans.
"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, including state-owned firms.
Wen said the country should prepare itself for greater hardships.
"We must remain sober-minded, increase our sense of peril, and lean towards taking a grimmer view of trends," Wen told members of the Chinese People's Political Consultative Conference, an advisory body that meets alongside the parliament.
"We must make long-term mental preparations to respond to even greater hardships," he said.
Some economists think the government will depart from its habit of avoiding surprises in the annual parliament session by unveiling fresh stimulus spending.
A planning official has said China would direct extra money at infrastructure, manufacturing and social security.
(Reporting by Chris Buckley, Editing by Ken Wills)