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"We will encourage financial innovation, boost further opening-up of the financial industry, in order to facilitate the growth of real economy," he said.

The Belt and Road Initiative, which was announced by Xi in 2013, is aimed at promoting connectivity, cooperation and common prosperity along the ancient land and maritime trade routes.

So far, Chinese armed forces participating in the mission have all successfully reached the exercising area.

"The transition will not happen overnight, as we must wait for these new leading industries to become established and take the economy to the next level," said Huang Yiping, a professor of economics at the National School of Development, Peking University. "And it will take more than a couple of years before they can begin to do so."

Lu said the new policy will help China meet the development goals set in the 13th Five-year Plan that the recent CPC plenary session discussed, especially in the situation that slowing economic development needs more population to increase the domestic demand.