.Chinese Premier Li Keqiang said Friday that the country is determined to implement larger scale tax and fee cuts this year as a key countermeasure against downward economic pressure.

Chinese Premier Li Keqiang meets the press after the conclusion of the second session of the 13th National People's Congress (NPC) at the Great Hall of the People in Beijing, capital of China, March 15, 2019. [Photo/Xinhua]

The move is expected to deliver a dividend of nearly two trillion yuan (about 297 billion U.S. dollars) to the companies, Li said at a press conference after the conclusion of the annual session of China's national legislature.

"We are going to cut value-added tax rates for manufacturing and other basic sectors, as well as for small and medium-sized companies, the largest providers of jobs in our country, in a meaningful way," he said.

"This will create a more enabling environment for companies and in effect cultivate our tax sources."

Noting that the reform requires exceptional courage and determination, Li said the government must live on a tight budget given the drop in fiscal revenues.

"This is not something taking an overdraft on our future, but nurturing a better tomorrow," he said.