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As downward economic pressure becomes more intensive and the domestic market continues to expand, the deep-rooted challenges facing the industry need to be addressed.

The concept of supply-side structural reform was first mentioned in late 2015 and is now at the core of China's economic work, which includes the major tasks of deleveraging, destocking, cutting excess capacity, reducing costs and shoring up weak areas.

The president made the remarks during an interview with Xinhua here ahead of his state visit to China, which is slated for July 17-20.

Meanwhile, if reform plans involve capital market issues, the company should "strictly follow securities regulatory laws and regulations and existing supervisory rules," Chang said.

Poverty relief in these areas should focus on empowering and stimulating the people and helping them develop basic job skills in non-agricultural industries, he said.