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The strategy, released on Thursday, seeks to promote trade, enhance peace, security and good governance and bolster democratic institutions.

The mechanism aims to improve the government's efficiency, prevent and reduce corruption, and help the Party's discipline and inspection organs play a better role.

The inspection further indicated the central government's determination to cool the property market, and the central authorities will improve regulation on the basis of the results, said the statement.

Under China's current tax regime, VAT is collected by the state taxation authorities, with 75 percent turned in to the central government and the rest to local governments. Revenues from business tax belong to local governments and account for more than one-third of local government incomes.

He also called on both countries to step up joint investment, joint research and production in the hope of realizing mutual benefit.