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China will both cut back the fiscal stimulus of the last couple of years and rein in credit growth to strengthen its overextended financial system, Obstfeld said.

China should stick to the organic unity of Party leadership, the running of the country by the people, and law-based governance, and should strengthen oversight to ensure compliance with the Constitution, Xi said.

China set up its first FTZ in Shanghai in 2013 to attract more foreign investment and promote trade and regional integration. Since then, the country has added 20 zones, including those in such diverse areas as the coastal provinces of Fujian and Guangdong and the inland provinces of Shaanxi and Sichuan.

China sales in April reached 14,724 cars, up 20.8 percent as compared with the same month last year. In the first four months of the year, however, sales declined by 15.6 percent, compared with the same period last year.

China welcomes foreign capital in its plan to build semiconductor strength, the top industry regulator said on Wednesday, as Beijing speeds up Chinese chip development to achieve core technological breakthroughs.