The scale and structure of the labor market will certainly be high on the agenda. The premier said the government should inject vigor into the society by fostering innovation and entrepreneurship among the country's 800 million to 900 million labor force, which could be an engine for China's sustainable growth in the future.

More support, training and education resources will be offered to the country's skilled labor, estimated at around 200 million, the premier said.

China is seeking to unleash the power of its talents through reform, Zhang said.

Clarifying government functions

Responding to the theme of this year's forum, "Creating Value Through Innovation," the premier stressed China's reform itself is a sort of institutional innovation.

The government will strive to finish a five-year goal of cutting red tape and decentralizing administrative approval rights within just two years, Li said.

The government will improve ongoing oversight and perform its role as a referee of the market, Li said. The power and responsibilities of the government shall be clearly defined.

"Only by so doing can we build a market environment that favors honest operations and fair play, energizes businesses and encourages innovation and creativity," he said.

China will punish companies, domestic or foreign, that are involved in producing counterfeit or shoddy products, engage in fraud or deception or steal trade secrets, he said.

China launched a series of probes into big foreign companies in recent years, with the latest episodes being anti-monopoly investigations against Microsoft and Jaguar Land Rover as well as price probes into 12 Japanese automakers.

Although these cases stirred unease among some investors, others think it just came along with China's economic transition.

Foreign firms are now beginning to receive the same treatment with the Chinese players and getting more regulation from local regulators, said Zhang from the Standard Chartered Bank. As a result, they should act positively to adjust its own strategy, Zhang said.

On Tuesday, the premier clarified that recent anti-trust probes do not target particular firms or industries as foreign firms accounted only 10 percent of those involved in such probes.

Economists upbeat on China	Sci-Tech, innovation to play crucial roles in China's long-term growth