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China's ambassador to the United States said the two countries should look at the "really big picture" that would entail them working closer together instead of focusing on their trade imbalances.

China will improve the management of State-owned financial institutions in key sectors to bolster financial security, widen mixed-ownership and financial opening-up reforms to vitalize the market, said a guideline released by the central authorities.

China's auto sales will continue to show negative growth or remain flat in the next two years, but is expected to see growth from 2022 onwards and perhaps a 4 percent increase from 2023-25, Xu added.

China will cut VAT rates this year as part of a tax reduction package amounting to 400 billion yuan (.6 billion) to drive high-quality development, a State Council executive meeting chaired by Premier Li Keqiang decided on Wednesday.

China will work to build a number of advanced manufacturing clusters with international competitiveness, said a statement released after the key economic meeting, which charted the course for economic work in 2020.