Li highlights structural optimization to boost growth

Chinese PremierLi Keqiang delivers the government work report during the opening meeting of the third session of China's 12th National People's Congress (NPC) at the Great Hall of the People in Beijing, capital of China, March 5, 2015. (Xinhua/Huang Jingwen)

Chinese Premier Li Keqiang on Thursday reiterated the new leadership's vision for a more healthy and effective economy that is powered more by consumption and the service sector instead of the traditional engines of manufacturing and investment.[Special coverage]

Addressing the opening of the annual session of the National People's Congress, China's top legislature, Li said the 2015 is a critical year for ensuring steady growth and making structural adjustments.

"China's economic development has entered a new normal... Systemic, institutional, and structural problems have become 'tigers in the road' holding up development," Li said.

The Chinese economy grew 7.4 percent in 2014, the weakest annual expansion in 24 years. The government has further lowered this year's growth target to approximately 7 percent.

The government this year will actively adapt to and guide the "new normal" in China's economic development, ensure that the economy performs within an appropriate range, focus on strengthening the quality and benefits of economic development, and give greater priority to transforming the growth model and making structural adjustments, Li said.

Chinese authorities have for years vowed to change the country's economic structure, which was long led by exports and massive state-directed investments, into one more responsive to the growing needs of a consumer-driven society.

Consumption contributed 51.2 percent of economic growth in 2014,according to the government. That compares with nearly 70 percent in the United States.

The drive has come with extra urgency since last year in the face of mounting downward pressure on the world's second largest economy. The government had aimed for a 7.5-percent expansion of the economy in 2014, but actual growth came in at 7.4 percent.

China to reform investment, financing systems

China won't allow economy to nosedive

Premier Li warns 'formidable difficulty' in 2015

China lowers 2015 economic growth target to around 7 pct

China aims at medium-to-high speed of growth

China maintains proactive fiscal, prudent monetary policies