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However, overcapacity reduction casts a shadow over the Chinese economy. China still faces daunting challenges in reducing capacity for the rest of 2016, despite an acceleration in July, according to Zhao.

He also pointed out that the two countries should strengthen customs and quality control so as to increase convenience of port customs clearance, improve people-to-people exchanges in cultural, media and educational fields, and promote cooperation in defense and law enforcement in order to maintain regional security and stability.

Xi said he was looking forward to meeting with President Obama in Hangzhou in September, expressing his hope that the meeting will boost bilateral ties and direct the stable development of bilateral ties.

Xi made the remarks during a meeting with Myanmar's State Counsellor Aung San Suu Kyi, who began a five-day official visit to China on Wednesday.

"China's goal of reform has been set and we will not deviate from it. China will take sure and firm steps in advancing reform and will not slow down its pace," Xi said.