New economy will be the major driver of growth, says Premier

"We have a bigger market in central China since there are fewer franchises, and the cost for logistics and labor is relatively low," she said.

During a visit to an incubator center for farmers in Xinzheng, Henan province, Li Keqiang inquired about the interest rates on loans at rural banks and if the new rates had been implemented.

"Please speak frankly," the premier told an employee of a rural bank.

The employee said the market-oriented interest rate reform will benefit banks in the long run, but the banks need time to adapt.

"The market-orientated reform is beneficial for interbank competition, which will then in turn lower the lending rate and better serve the real economy," the premier said.

The central bank cut the benchmark interest rate by 0.25 percentage points in late June and lowered the reserve requirement ratio for targeted banks.