One-China policy is political foundation of US-China relations: Le Keqiang

The Chinese premier said the baseline of the relationship is the US agreement to recognize and uphold Beijing's "One-China" policy and legitimacy.

In a sign that he would not cave to pressure for more government spending to boost jobs, Mr Li said China has maintained steady growth "without resorting to massive stimulus measures".

Beijing has downplayed the possible fallout from Britain's withdrawal from the European Union, with Foreign Minister Wang Yi saying the challenges facing the continent are a chance to make the EU stronger.

In a phone call with Chinese President Xi Jinping in February, however, Trump reaffirmed America's recognition of a single, unified China.

The Trump administration has stirred concern in Europe due to doubts about North Atlantic Treaty Organisation and countering Russian Federation in Ukraine, as well as over free trade.

U.S. President Donald Trump promised to raise import taxes on Chinese goods to counter what he says are unfair practices by Beijing.

But Mr Li said previous doubts about China's economy had been disproved.

"I believe whatever differences we have, we can sit down and talk to each other and work together to find solutions", he said.

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"No matter what bumps the China-US relations may run into, we hope this relation will continue to move forward in the positive direction", he added.

Trump and Xi subsequently smoothed over the dispute last month in a phone call in which the United States leader reiterated Washington's adherence to the "one China" policy that nominally endorses Beijing's claim to Taiwan.

China has cut its economic growth target this year to around 6.5 percent from its 2016 goal of 6.5 to 7 percent, while vowing to push through reforms to tackle rising debt and guard against financial risks. "Should a trade war break out between China and the US, it would be foreign-[funded] companies, in particular USA firms, that would bear the brunt of it", he warned.

"The chairmen recognised the possibility that North Korea could conduct provocative actions during the Key Resolve/Foal Eagle exercise, or in connection with North Korean major political events in April", US Joint Chiefs of Staff General Joseph Dunford's office said.

Meanwhile, China has only offered one possible resolution to the Korean conflict: for the USA and South Korea to cease all joint military exercises in exchange for a full stop of all North Korean nuclear operations.

The Premier of State further highlighted that China will continue to open up to the world, even on a higher level.

There will not be an eruption of systematic financial crisis in China and it has many policy tools available to resolve financial risks. He said the exchange rate "will remain generally stable".

  • Adam Floyd