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"Leading universities in the UK, in London, Oxford and Cambridge have held on very well. But I think many more of the universities in England are more challenged. They are not generously funded as some of the great Chinese universities now," he said.

The report also listed problems, such as polluters not fulfilling their responsibilities, and local government departments performing poorly in supervision and law enforcement.

In the past few years, China has been intensifying its efforts to trim financial risks and shift the economy from large-scale stimulus towards consumption, services and innovation.

According to IMF, the upward revision to the 2017 forecast reflects "the stronger-than-expected outturn in the first half of the year underpinned by previous policy easing and supply-side reforms."

Xi underlined that this is China's first FTA upgrade completed with a Latin American country.