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China's average REER rate in 2018 appreciated by about 1.4 percent relative to 2017, driven by the appreciation in the nominal effective exchange rate, the report said, adding that external balance assessment indicated that China's REER to be at the same level as warranted by fundamentals and desirable policies.

China's capital city Beijing and financial center Shanghai grabbed the second and third spots on this year's list, followed by Guangzhou in South China's Guangdong province.

China will open its doors even wider and should work positively to improve the business environment for foreign investors, the premier stressed. He pointed out that the opening-up experience accumulated by pilot free trade zones should be expanded across the country, making China an attractive place for foreign investors.

China's Minister of Commerce Zhong Shan said on Sunday that China has no intention of starting a trade war with the US, but added that the country can cope with any challenge and will defend its national interests.

China would like to see the establishment of an East Asian economic community through deeper pragmatic engagement and a sustained drive focusing on regional connectivity, free trade, financial cooperation and sustainable development, Vice-Foreign Minister Liu Zhenmin said on Friday.