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I know many of you are interested in China's economic prospect. Let me assure you that on the whole, the Chinese economy is steady and moving in the right direction. GDP grew by 7 percent in the first quarter. Major economic data of May and June such as industrial output, investment, consumption and export have stabilized and rallied, and market confidence has strengthened.

Li made the remarks at the opening of an economic and trade seminar marking the 45th anniversary of the establishment of China-Chile diplomatic relations and the seventh meeting of the China-Chile Business Council.

In the spirit of neighborhood diplomacy of friendship, sincerity, reciprocity and inclusiveness, China's armed forces will further develop relations with their counterparts in neighboring countries and work to raise the level of military relations with European counterparts.

The cooperation, which is also open to the United States and Europe that enjoy developed technologies, is expected to achieve win-win results and mutual development, Li said, pointing out that production capacity cooperation is a new approach for deepening the North-South cooperation.

"We should hold high the banner of free trade and resolutely oppose protectionism," said the Chinese premier.