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"Most of the technology and materials are domestically made," said Wang Qiming, chief technologist of the FAST project.

Opening up

We need to advance structural reform, in particular that on the supply side. The structural problems facing the Chinese economy are about both the supply and demand sides, especially the supply side. We need to advance structural adjustment through reform, reduce inefficient and low-end supply, and expand effective and medium- to high-end supply. This is conducive to economic transformation as well as growth. A major task for us is to phase out outdated production capacity and address overcapacity, especially in steel, coal and other sectors that face difficulty in operation. Initial progress has been made in recent years, as is shown in the lowering production of raw coal and crude steel, but our efforts must well continue. We will adopt a market-based and rules-based approach and apply strict standards in environmental protection, quality and safety. The biggest challenge is how to address possible layoffs in this process. Businesses need to take multiple measures to ensure that their employees will get reemployed. Both the central and local governments should provide necessary support to take care of the affected employees. Overcapacity is a global challenge. The fact that we have taken the initiative to cut overcapacity demonstrates that China is indeed a responsible country.

"And it is fundamental that the relation between Italy and China takes into account the priorities of Chinese government," he added.

Accompanied by Serbian President Tomislav Nikolic and Prime Minister Aleksandar Vucic, Xi took a tour of Zelezara Smederevo, Serbia's sole steel mill, on the last day of his three-day state visit to the Balkan country.