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During a visit to the State Administration of Taxation and the Ministry of Finance on Friday, the premier hailed the expansion of the VAT scheme, which began in 2012 to replace business tax with VAT in certain industries, as a major step in China's structural reform.

Plenty of evidence shows that the Philippines' true purpose in submitting the case is to deny China's territorial sovereignty over the Nansha Islands and legitimize the Philippines' illegal occupation of them, Chinese observers have said.

Zhang, chairman of the Standing Committee of China's National People's Congress (NPC), said China and Hungary enjoy deep friendship and praised the growing political mutual trust, cooperation and exchanges between the two sides.

"Although Japan tried its utmost to find some supportive documents, which were taken out of context, it can never change the fact that China has sovereignty over the Diaoyu Islands," Hua said.

"Asian countries, especially the Southeast Asian countries, should clearly give their support to the Chinese stance of safeguarding regional peace and stability in the South China Sea, and they should stick to the approach of solving disputes through friendly consultation and negotiation," Shestakov said.