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A consumption tax on energy intensive, high polluting industrial products will be imposed and resource tax expanded to all natural resources, including air and water.

China and Britain have become indispensable partners in each other's economic and social development, Li said at the press briefing, noting that Britain is the largest recipient of Chinese investment and students in the EU while China is Britain's second trading partner outside the EU.

Though advancing reform has to "shake up vested interests," which may be more difficult than "touching the soul," Li said at the Davos Forum.

China's Ministry of Commerce will push forward the strategy by accelerating the establishment of free trade areas (FTAs), along with the two Silk Roads, and work with other countries to lay down specific measures.

The Chinese leader urged the G20 major economies, which account for 80 percent of world trade, to have a sense of crisis and assume the responsibility to advance a new round of global trade expansion.