LONDON (Reuters) - Chinese Premier Wen Jiabao said yesterday he had seen signs of a recovery in China's economic activity late last year after its runaway growth slowed abruptly.

"During the last ten days of December it started to get better. The goods piled up in port started to decrease and the price of industrial products started to rise," he told a business audience during a visit to London.

China's economic growth slumped to 6.8 percent in the last quarter of 2008, dragging down the annual rate of expansion to a seven-year low of nine percent as the world's most populous country felt the impact of the global financial crisis.

Wen also spoke out about a "dangerous trend" towards protectionism as countries around the world struggle to respond to the impact of the global credit crisis.

"We need to oppose protectionism in trade and investment," he said.

"Everyone talks about trade liberalisation, but when it comes to action, everyone cares only about himself," Wen said. The Chinese Premier is on the last leg of a European tour.

He will hold further talks today with British Prime Minister Gordon Brown who is preparing to host a G20 summit in April bringing together representatives of the world's largest economies.

Brown also warned about the dangers of protectionism in a speech to the World Economic Forum in Davos on Friday.

Earlier yesterday British police arrested five pro-Tibet demonstrators in London protesting China's policies there.