China's Vice Premier Li Keqiang said Sunday that China can't delay reforms to rebalance its economy. He added China will set policies to achieve relatively fast growth and stable prices that should help total trade maintain double digit growth this year.

Delivering his keynote speech to kick off the 2012 China Development Forum, Li said China would deepen reforms on taxes, its financial sector, prices, income distribution and seek breakthroughs in key areas to let market forces play a bigger role in resource allocation.

The vice premier also said while the overall trend of China's economy was stable with sound fundamentals, it faced structural obstacles that must be overcome.

Li said, "China has reached a crucial period in changing its economic model and can't be delayed. The innovation of the current development mechanism is the core of the economic mode transition. The reform and opening up is the fundamental driving force of boosting the transition and innovation. China's reforms have entered a tough stage."

However, Li said there were some encouraging signs emerging about the pace of global economic recovery. He expected China's total trade to maintain double digit growth this year. The government has an official target of 10 percent growth in both imports and exports for 2012.

Li said China hopes to attract more overseas investment and draw more imports.

Christine Lagarde, Managing Director of the International Monetary Fund (IMF) said at a press briefing later that she is confident that Chinese policies will continue to encourage that positive development.

Rich Lavin is the Group President of the U.S. headquartered heavy machinery maker Caterpillar. He is one of the hundreds of foreign business representatives participated the forum. He believes the Vice Premier Li Keqiang's speech signals that China will ramp up its supports to drum up more foreign companies into China.

Chinese Premier Wen Jiabao, speaking after the close of China's annual meeting of National People's Congress, said that slower growth and bolder political reform must be embraced to keep the economy from faltering and to spread wealth more evenly.

(CNTV.cn March 18, 2012)