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Johnston is paying a state visit to China from Friday to Thursday at the invitation of Chinese President Xi Jinping. On Friday, Xi also met with the governor general.

A new round of fiscal and tax reform should be initiated to strengthen fiscal stability and sustainability in the medium- to long-term, including improvements in the social insurance system and a local tax reform featuring property tax and consumption tax.

He noted that in his talks with Vietnamese Premier Nguyen Tan Dung on Sunday, they agreed to properly handle their differences and prevent the South China Sea issue from disrupting the overall cooperation.

Key, for his part, said New Zealand and China enjoy sound cooperation in many areas, noting that bilateral ties are continuously advancing to a higher level.

ZHENGZHOU, Nov. 23 (Xinhua) -- The role the Chinese government has played in leading economic development is outstanding, yet the backlash from such practices is impeding sustainable development of the economy, prompting the government to give the market more say in allocating resources.