Reform fundamental driving force for China's economy: premier

Chinese Premier Li Keqiang said on Tuesday that reform will drive China's economic growth.

To create a favorable environment for this, China has pursued and promoted supply-side structural reform, streamlined administration, improved government services and rolled out VAT, Li said during a session with business executives at a World Economic Forum meeting in the northern Chinese city of Tianjin.

This innovation-driven development strategy has been implemented with the aim of encouraging entrepreneurship and innovation, boosting creativity and tapping into market potential, he said.

Thanks to those measures, the development of new economy and new business models has exceeded expectations and provided employment opportunities, and aided the upgrading of traditional economic engines, Li said.

The economy has maintained medium-high growth this year, Li said.

As the world's largest developing country, China has initiated the "Made in China 2025" and "Internet Plus" programs to improve its manufacturing and satisfy growing market demand, Li said.

Confronted with saturated heavy industries, China will cut excess capacity and help workers who are made redundant in the process, Li said.

He called for joint efforts to address overcapacity, seen in certain industries across the world, amid sluggish global economic recovery.

As for the financial sector, Li said China will continue to develop its capital market and enhance supervision to prevent systemic, regional risks.

The premier also highlighted China's opening up policy and promised to make market access easier for foreign firms and build a fair business environment.

China aims to build itself into the world's most attractive investment destination, and companies from home and abroad are welcome to expand business here, Li said. Endi