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Li made the remarks while meeting with Vietnamese Prime Minister Nguyen Xuan Phuc. The two leaders will attend the 11th Asia-Europe Meeting (ASEM) Summit, which will be held in Ulan Bator from July 15 to 16.

The United States also agreed to take actions to boost productivity and investment, raise saving rates as well as labor participation rates, and achieve sustainable fiscal discipline in the medium-term.

The government will also continue to cut excess capacity in steel and coal sectors in "a market-oriented and lawful" manner, he vowed.

The premier told the delegates that although China has become the world's second largest economy in terms of GDP, there is still a long way to go on the road toward modernization.

The Belt and Road Initiative, proposed by Chinese President Xi Jinping in 2013, refers to the Silk Road Economic Belt that links China with Europe through Central and Western Asia by inland routes, and the 21st-Century Maritime Silk Road connecting China with Southeast Asia, Africa and Europe by sea routes. It is is a development strategy and framework that focuses on inter-connectivity and cooperation among countries primarily in Eurasia.