China Daily: Some people conclude that China has become the number one economy in the world and now poses a challenge to the leadership status of the United States. But they also argue that China is still free riding in international affairs. What is your response to such a view and what are your views on advancing China-US ties?

Li Keqiang: The first part of your question is about whether China has become the largest economy in the world. I have heard such a view during overseas visits. But I always feel there are some elements of misleading exaggeration in it. According to those authoritative standards, China is still the second largest economy in the world and more importantly, our per capita GDP is still behind about 80 countries. Some time before this year's Spring Festival I paid visits to places in China's western region. I visited two rural homes. There are mother and a son in one family who live in a very shabby place where wind can easily be felt in the house. And because the family is so poor, the 40-year-old son has no money to get married. The other home has produced a college student. There is a boy and a girl in that family. To support her brother to go to college, the girl has to work in cities and even couldn't come home for family reunion during Spring Festivals. It pains me deeply to see our people living in such distress. I'm sure there are many more such families in China. By the standard of the World Bank, we still have 200 million people living in poverty. So I can say that China is still a developing country in every sense of the term.

China must manage its own affairs well and maintain development at a reasonable speed. That in itself is China's major contribution to the world. Actually, China is assuming greater due international obligations and responsibilities. Talking about free-riding, for such a big country as ours, how could it get a free ride on anybody's train? What China is doing is to work with other countries to pursue common progress.

Development will remain the top priority for China and we need a peaceful international environment for us to focus on domestic development. When it comes to the China-US relationship, this is a relationship between the largest developing country and largest developed country in the world. We have proposed that China and the United States work together to build a new model of major country relations featuring no-conflict, no-confrontation, mutual respect, and win-win cooperation. This year, President Xi Jinping will pay a state visit to the United States at the invitation of his US counterpart. It will give a strong boost to China-US ties.

Admittedly, there are differences between China and the United States, but what's more important is that the two countries share extensive common interests. When differences are properly handled, the two sides can channel more energy into expanding the convergence of their interests. One highlight in the China-US relationship is that the two sides are advancing negotiations of a bilateral investment treaty (BIT), and the BIT is built around the pre-establishment national treatment and a negative list. This is to break the ceiling on China-US business cooperation and will open up new dimensions for the growth of China-US ties. Naturally the negotiation will take time, but it has already sent a very clear message to both countries and the wider international community that China-US business ties will get even closer and put the overall China-US relationship on a more solid footing.

Hong Kong Economic Times: My question is about the constitutional reform in Hong Kong, which is of keen interest to the people of Hong Kong. We are getting closer to the date of voting on the constitutional reform plan, but recently there have been some quite tough statements by the central leadership on this topic. This has made many people not optimistic about the prospect for the constitutional reform bill to be adopted. Also for the first time in the government work report, there is such wording that one needs to strictly comply with the Constitution and the Basic Law. Does this mean that the central government is tightening its policy towards Hong Kong and will that affect the relationship between the central government and the Hong Kong SAR and will that add more uncertainties to the cultural and business interactions between the two sides?

Li Keqiang: It is China's basic state policy to adhere to the principles of "one country, two systems", "the people of Hong Kong governing Hong Kong", "the people of Macao governing Macao" and both regions enjoying a high degree of autonomy. Some people are worried if the central government is tightening its policy towards Hong Kong. Such a worry is not necessary. It's true that this year's government work report said that one needs to strictly comply with the Constitution and the Basic Law. This actually shows our commitment to ensuring the consistent and full implementation of the "one country, two systems" principle. This principle has been written into the Constitution and the Basic Law of the Hong Kong SAR. They together form the constitutional basis of the Hong Kong SAR. The Basic Law has also provided for what system should be practiced in Hong Kong. The "one country, two systems" principle reflects the will of the country and the people, and cannot be changed at will. Some may feel that I am picking words in answering your question. This is because you asked a question that relates to the law, so I need to answer it with utmost seriousness.

The central government will continue to firmly support the government of the Hong Kong SAR and its chief executive in governing the region in accordance with law. And the central government will give stronger support to Hong Kong for it to play its unique role in China's reform, opening-up and modernization drive. We hope that both the mainland and Hong Kong will benefit more from their exchanges and cooperation and people of both sides feel satisfied and see their wellbeing enhanced.