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China's central government is fighting pollution and environmental degradation as decades of growth have left the country saddled with smog and contaminated soil.

China's State Flood Control and Drought Relief Headquarters upgraded the emergency response for flood control from level IV to level III on Tuesday, as incessant downpours continued to wreak havoc across vast stretches of the country.

China will open the market even wider, according to the newly released government white paper, "China's Position on the China-US Economic and Trade Consultations". Measures to be taken include expanding market access for foreign investment in broader areas, and strengthening international cooperation on intellectual property protection, the paper said.

China will tighten regulations on financial institutions, to protect investors who are not able to recognize potential financial risks and to safeguard people's money. "Financial activities for the public, whether in the name of technology or not, should be strictly regulated," Pan said.

China's 41 trillion-yuan (.6 trillion) investment by 2030 creates a huge market and also drives technological innovation, said Xie.