The two countries share extensive common interests and should "sit down to talk to each other" to build trust and narrow differences, Li told journalists at the end of China's annual parliamentary session, adding that diplomats were working toward a face-to-face meeting between President Xi Jinping and President Trump.

Foreign firms have complained in recent years about a worsening business environment in China, claiming government policies favor local firms, though Li said China will quicken the pace that it opens its economy to foreign investors.

"China hopes that no matter what bumps this relationship may encounter it will continue to forge in the right direction", Li added.

He has accused Beijing of being the world's greatest currency manipulator and during his campaign vowed to slap 45% tariffs on Chinese imports, a move China has warned would trigger a damaging trade war.

Neither the USA nor China has taken significant steps to punish the other on trade since Trump took office.

China does not hope to be involved in any trade war either, because that is not good for the stability of the global trade and currency systems, Li added.

"Almost every year I have heard a prediction of the Chinese economy having a hard landing", he said.

He argued that the renminbi's 7 per cent decline against the United States dollar previous year was "quite modest" compared with that of other currencies.

The Government is hoping to expand GDP by about 6.5 per cent this year - a slowdown from 6.7 per cent growth last year.

The world's two most powerful men face a complex and potentially acrimonious range of discussions, including the escalating crisis on the Korean peninsular, the deployment of a controversial U.S. missile defence system in South Korea and the thorny trade relationship between the United States and China. He added that according to the evaluation on business environment in China made by the World Bank, China jumped 18 places a year ago compared with 2013.

A high-standard BIT between China and the European Union will aid bilateral opening-up, said Li.

"I should point out that 6.5 percent growth is not low speed and will not be easy for us to meet".

Premier Li said China's trade and investment ties with the United States created up to one million American jobs past year.

China will continue to push forward reform of its exchange rate formation mechanism, and follow a system of managed floating exchange rate determined by market supply and demand. Many already believe that a massive bank bailout may be inevitable. "We will take prompt and targeted measures to prevent them from further spreading", Li said. Li said that "a closed-door policy or beggar thy neighbour approach will not make anyone the victor". "We still have a good reserve of policy options and instruments at our disposal".