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The VAT reform is seen as the most important fiscal and taxation reform in China in more than two decades.

Local authorities should sincerely care about the working people and conscientiously implement Party and state policies to promote employment and entrepreneurship, he said.

China will also strongly support Laos in advancing its innovation and opening-up and exploring a development path suitable for its own situation, he said.

There are still huge obstacles for China to overcome in order to meet such goals, including excess capacity and inferior production quality, the report said.

The Abe administration has used previous G7 meetings to lobby Western powers to jointly contain China.