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Xi noted that innovation was core to the competitiveness of the armed forces and would accelerate combat capacity.

He also welcomed German Chancellor Angela Merkel to visit China later this year to attend the fourth round of China-Germany inter-governmental consultations.

Efforts are being stepped up to foster new development drivers while traditional drivers are being upgraded and improved, he said.

"As long as both sides recognize one China, we might discuss any issues," Li said at a press conference after the conclusion of the national legislature annual session, adding that the bedrock is the 1992 Consensus.

However, some reform projects launched long ago remain unfinished due to inadequate implementation.