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As a diplomat, Hiramatsu should not be so ignorant of the fact that there is no territorial dispute in the Donglang area, and that the root cause of the standoff stems from Indian troops' trespassing across the already delimited Sikkim section of the China-India boundary into Chinese territory. As Foreign Ministry Spokeswoman Hua Chunying has rightfully pointed out, it is India, not China, that is trying to create trouble and change the status quo. Thus, there must be a hidden agenda behind Japanese diplomat's deliberate distortion of the facts.

As excess capacity has weighed on China's overall economic performance, cutting overcapacity is high on the reform agenda. In 2016, China completed both its annual targets for coal and steel capacity reduction ahead of schedule.

As examples of China's economic vision, Fan said around 13 million jobs have been created annually in the past years. Also, China was advancing projects such as the Belt and Road Initiative and the Asian Infrastructure Investment Bank.

As for the much-discussed southward flow, the bank said the timeframe depended on northbound flows and government regulations on capital outflow, which were unlikely to change in the short term given the prevailing factors.

As a global financial downturn slowed the SCO members' domestic industrial transformation, the report said they all face both domestic and global pressures, and poverty reduction is a common task for them.