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Yi recognized some volatility on the yuan exchange rate, but said markets should not overreact, as the yuan's fluctuation range is still smaller than many other currencies.

When China was founded in 1949, it was a big but poor agricultural country, with a mostly rural population; since reform and opening-up in 1978, urbanization has accelerated.

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.

It also called for city planners to differentiate cities with urban landscape based on local characteristics.

"It shows that Chinese leaders continue to acknowledge the value of tradition in the modern world," Yu said.