Weighed down by volatile global markets, Chinese shares have gone through major fluctuations in the past two months with the benchmark Shanghai Composite Index falling by around 40 percent from its peak in June.
"The recent volatility appeared to be a follow-up to the global financial crisis that broke out in 2008," Li said. "China is not the source of it, but instead remains one of major drivers of global growth."
Li downplayed concerns over government debt as it is at a relatively low level.
Central government debt is only about 20 percent of China's GDP, while 70 percent of local government debt has been used in investment with expected returns, the premier said.
LEVEL PLAYING FIELD
China is striving for a level playing field for both Chinese and foreign firms as the economy is seeking innovation from all sources, for more sustainable growth.
The government has halved the number of industries that are off limits to foreign investors, and has cut red tape for foreign companies, the premier said.
Foreign direct investment in China remained robust at 7.7 percent during the first half this year amid a sluggish global economy, Li said.
China is negotiating with the United States and the European Union over bilateral investment treaties based on the "negative list" approach of clearly-stated banned practices, Li said.
