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"I must point out that the freedom of navigation in the South China Sea entitled under international law does not mean U.S. naval vessels or airplanes' freedom to flex their muscle," Hua said.

One highlight of the pilot programs was about public interest litigation. Since last July, prosecutors in 13 provincial divisions have been allowed to initiate public interest litigation cases concerning environmental protection, preservation of state assets as well as food and drug safety. So far, 12 cases have been filed directly by prosecutors on behalf of public interest.

The song explains how China will comprehensively build a moderately prosperous society, deepen reform, advance the rule of law and strictly govern the Communist Party of China.

We will actively promote reforms of the fiscal and financial systems. For example, business tax will be replaced with VAT in all sectors, a major step of structural reform that will save businesses more than RMB500 billion in tax. This will not only help us form a consistent tax system and eliminate double taxation. More importantly, it will strongly boost the development of the service industry, especially high-end services, such as R&D, and support the transformation and upgrading of the manufacturing sector. Most enterprises will benefit from the tax reduction to varying degrees, and small and micro businesses will see their tax burden significantly lightened. In times of fiscal difficulties, the government is doing this to release more water to nourish the fish in the pond, i.e. to generate continued momentum of growth with a short-term drop in fiscal revenue. It is also indicative of the room for fiscal flexibility left at our disposal. Let me give you another example. For reforms in the financial sector, we can explore market-based approaches for debt-for-equity swap to help lower corporate leverage ratio.

He told PLA lawmakers that the 13th Five-Year Plan period (2016-2020) is crucial to China's national defense and military development, and urged the armed forces to uphold political integrity, reform and rule of law, and strengthen their military buildup and combat readiness.