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China's capacity of providing financial services for the SMEs has seen remarkable improvement, with the credit supply constantly increased, financing cost steadily lowered and financial coverage widened.

Transfering production capacity might reduce some costs, but could also face other uncertainties in terms of local industrial development, economic environment, labor quality as well as risks of U.S. trade restriction measures, Wang said.

A total of 377 rivers across the country have reported floods exceeding alarm levels, over 80 percent more than the annual number of such rivers registered since 1998 when severe floods hit China, according to Wang Zhangli, deputy director with the ministry's flood and draught disaster prevention department.

The second agreement marks China's recognition of the principle of EU designation, whereby all EU airlines will be able to fly to China from any EU member state with a bilateral air services agreement with China under which unused traffic rights are available, read the statement.

Going forward, liquidity will be kept reasonably sufficient and the lending rate for micro and small businesses will be further lowered.