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Third, we made steady progress in the reform of the fiscal system. We improved the mechanism for sharing the cost of export tax rebates between the central and local governments. We studied and moved ahead reform of the division of administrative authority and spending responsibilities between the central and local governments. As the tax reform progressed, we worked promptly to draw up a transitional plan for adjusting the division of revenue between the central and local governments.

"China's air quality is mainly caused by our energy structure, coal consumption specifically," Chen said at a press conference on the sidelines of the annual parliamentary session.

Situation in the South China Sea maintains generally stable thanks to the concerted efforts of China and ASEAN members, said Hong, adding that consultations on a code of conduct in the South China Sea have made consistent positive progress.

China was regretful that the DPRK insisted on launching the satellite, based on the ballistic missile technology, despite universal opposition of the international community, the spokesperson said.