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Domestic demand is a key pillar of Chinese economy as the second quarter saw smooth growth and China will continue to promote the new economy to foster growth, Chinese Premier Li Keqiang said on Monday.

The Chinese economy is going on within a proper range with an increasingly balanced structure thanks to effective macro-economic policies, Li said during a meeting with experts and entrepreneurs.

The new economy created over seven million people in Q2 and many traditional enterprises started to embrace new technologies or business models, according to Li.

However, the global economy and market still remain weak, with growing uncertainties and unpredictable follow-up effects. China must keep its macro-economic policy consistent and enhance timely finetuning to avoid risks, promote reforms and keep economic growth within a proper range, Li said.

China will push ahead with the upgrading of its economy, with focus put on supply-side structural reforms. It will streamline administration and improve services to enterprises, reduce tax and leverage ratio, cultivate new economic drivers via innovation to boost growth and employment, according to the premier.

The government will promote new urbanization to unleash domestic demand and beef up infrastructure development such as flood-prevention and city utility tunnel projects, Li added.

• [Editor:penny]