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"The business tax imposes a tax on tax, while the VAT levies only on the value added, which is fairer and more precise," said Li Wanfu, director of the Institute of Tax Science (ITS), a research arm of China's State Administration of Taxation.

China will definitely become more prosperous and quality of life will definitely improve if all ethnic groups pull together, Xi said while visiting a Hezhe minority village.

In a speech delivered here at the opening plenary of the fourth Nuclear Security Summit (NSS), Xi recalled that he envisioned the building of a global nuclear security system featuring fairness and win-win cooperation at the third NSS in The Hague.

Tepid global demand and a slowing domestic economy have dealt a blow to foreign trade, which fell 7 percent year on year in 2015. Exports were down 1.8 percent and imports down 13.2 percent.

Steel overcapacity is a worldwide problem which requires joint effort from all countries, the official said. Trade protection measures could not solve the problem and will hinder normal international trade orders.