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"There is a direct linkage between the state of a business environment and efforts of the government," Li said. "It is important that the government work out a law-based list of items subject to government approval. Issuance of a business license and that of administrative permits must be decoupled."

After the talks, the two leaders witnessed the signing of bilateral cooperation documents.

Li said the opening-up of the financial sector of a nation was closely related to its development phase, economic level, and regulatory capacities.

However, Zhan noted that "the investment flows to China continue to increase despite mounting trade tension, and increasing cost of production".

He said a technical committee has been set up to design a proper framework of cooperation between the two partners within a period of two months after which a commercial agreement will be signed.