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By the end of October 2018, China has 71.37 million self-employed households and 30.67 million private companies, growing at least 500-fold and 338-fold, respectively.

The coming years will see closer space cooperation between China and European countries. China's Chang'e-4 lunar probe, set to be launched in December this year and expected to become the first probe to soft-land on the far side of the moon, will carry detectors from Germany and Sweden. A Sino-European joint mission, the Solar wind Magnetosphere Ionosphere Link Explorer, will be launched in 2021.

The third step will see the air force fully transformed into a world-class force by mid-21st century, according to Xu.

"As we look back over the four decades of reform and opening-up, we in China are more convinced than ever before that only through reform and opening-up can China develop itself," Xi said.

The use of force and attempts to stop violence with violence do not help solve problems, he said. "China calls on both sides to meet each other half-way, stop military actions and effectively promote the easing of tension."