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China will implement reforms in such areas as education, employment, social security, healthcare and people's income to tackle the social conflicts that have emerged during the country's rapid economic development, he said, describing the move as key to ensuring the success of China's modernization drive.

Li stressed that the settlement of the South China Sea issue will impact not only the affection between the two peoples, but also the political and security environment for bilateral cooperation.

Yu Zhengsheng, a Standing Committee member of the Political Bureau of the 18th CPC Central Committee, has pledged that the reforms this time will be "broad, with major strength, and unprecedented."

In addition, the two sides agreed to push forward maritime cooperation and strengthen practical cooperation in such areas as navigation safety, maritime security, navy cooperation, marine scientific research and environmental protection.

While focusing on consumption, Li also proposed maintaining a reasonable scale of investment, with priority given to energy conservation, environmental protection, railway projects in the central and western regions, and municipal facilities.