China's transformation urged

China's economy is closely intertwined with other Asian countries'. China will strive to achieve sustainable development, which will also benefit Asia's healthy development, said the vice premier.

"A faster shift of the growth model holds the key to continued economic growth and social development in China," he added.

Li said the primary task of the economy's restructuring is to expand domestic demand, while the greatest potential of domestic market lies in urbanization.

The country's current efforts to coordinate the development of industrialization, urbanization, and agricultural modernization will help sustain moderately rapid growth in the coming years and improve the quality and efficiency of this growth, Li said.

To switch to a healthier economy, China in March pared its GDP growth target to 7.5 percent for 2012, underlining its intent to make more room for growth mode transformation.

Zheng Xinli, vice-chairman of the China Center for International Economic Exchange, said China's urbanization rate exceeded 50 percent for the first time last year, much lower than the average 70 percent in developed economies.

"Each additional percentage-point increase in urbanization means over 10 million more rural residents becoming city dwellers in China, while each city dweller will spur at least 100,000 yuan ($15,873) in investment in infrastructure," Zheng said.

Furthermore, Vice Premier Li told the forum that China will deepen reforms and opening-up to remove institutional obstacles on its course to transform growth mode, advance reforms in various sectors including taxation, finance, pricing as well as in income distribution and enterprises.

"China will adopt an even more proactive opening-up strategy dedicated to creating an open, transparent, fair, competitive and predictable marketplace and legal environment for all enterprises in China," he said.

Rajeev Singh-Molares, president for French equipment giant Alcatel-Lucent's Asia Pacific region, said he was impressed by Li's commitment to reform and making the economy more open and modern.

"The Chinese government will continue along the path of reform and the path of economic growth. We are very optimistic about the future of China," he said in an interview with Xinhua.

Being Asia's largest import market and the region's most important source of investment, China will continue to work with Asian countries, expanding cooperation in emerging industries, infrastructure, finance and technology, the vice premier said as he wrapped up his speech.

As a non-governmental and non-profit international organization founded in 2001, BFA has been committed to promoting regional economic integration and bringing Asian countries closer to their development goals.

More than 2,000 government, business and academic leaders from around the globe attended the forum, which this year adopts the theme "Asia in the Changing World: Moving toward Sound and Sustainable Development."

Among attendants of the annual session are Italian Prime Minister Mario Monti, Kazakhstan's Prime Minister Karim Massimov, Pakistani Prime Minister Yousuf Raza Gillani, Iranian Vice President Mohammad-Javad Mohammadizadeh, Thailand's Deputy Prime Minister Kittiratt Na-Ranong and Vietnamese Deputy Prime Minister Hoang Trung Hai.