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Although China has made progress in streamlining administration, overhauling market regulation and optimizing government services, there is still much work to be done, said the premier in a speech released on Sunday.

China expects improvements to global economic governance and international financial stability and to see revitalization of trade and investment through an open global economy.

China will always pursue good neighbourly policy toward Myanmar and is willing to develop the traditional friendly relations with Myanmar's new government, strengthen the high-level exchanges, boost political trust and further deepen the comprehensive strategic cooperative partnership between the two countries, wang said.

"We urge the G7 member states to honor their commitment of not taking sides on issues involving territorial disputes," Chinese Foreign Ministry spokesman Lu Kang said in response to the statement issued by the foreign ministers from Britain, Canada, France, Germany, Italy, Japan and the United States on Monday after they convened in the Japanese city of Hiroshima.

Liu Shangxi, head of the Research Institute for Fiscal Science under China's Ministry of Finance, said the VAT helps create a fairer market for business.