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Founded in 2001, the SCO consists of China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. It also includes Afghanistan, Belarus, India, Iran, Mongolia and Pakistan as observers.

Speaking to national lawmakers from the military at the ongoing annual parliamentary session, Xi, also Chinese president and chairman of the Central Military Commission, said the future of the People's Liberation Army (PLA) hinged on innovation and reform.

"This will trigger market vitality and ingenuity, and will create a level playing field for all market players," said Li when holding discussions with foreign experts working in China at the Great Hall of the People.

-- We should encourage people-to-people and cultural exchanges. The Chinese and Czech peoples have long admired and appreciated each other's civilization and culture, and such exchanges have boomed in recent years. We should expand exchanges in culture, education, film and television, tourism and health sectors, encourage young people and students to interact more with each other to renew our traditional friendship.

The two largest economies in the world, China and the United States have an important role to play, he added.