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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.

Speaking in an informal meeting during the 11th Asian-Europe Meeting (ASEM) Summit in Ulan Bator, Li said Asia and Europe are enjoying peace and stability in general terms, but outstanding security challenges, both traditional and non-traditional ones, remain on the two continents.

The chairman and vice chairpersons also decided that the Standing Committee of the CPPCC National Committee will convene in late August and discuss cultural development, the statement said.

Education on national unity and progress should be enhanced to strengthen the idea that the Han ethnic group and various ethnic minority groups are inseparable from one another, Xi said.

"To brave through the rough waters of world economy and start a new journey for future growth, it's good to know that we are in the same boat," he said.