China needs to relocate 1m workers: Li

China needs to relocate nearly one million workers this year due to capacity cuts, Premier Li Keqiang says.

Li made the comment on Wednesday at his annual news conference at the end of the annual meeting of China's parliament.

He also said China will continue to push yuan exchange rate regime reform and does not hope to use yuan depreciation to support exports.

The yuan fell 6.5 per cent against the US dollar last year, with the central bank spending down foreign exchange reserves to prevent further weakening in the currency.