Beijing ( CNN ) China 's premier on Sunday offered a sobering assessment of the world 's second largest economy amid fears of a sustained slowdown but brushed aside concern that it could face a full-blown economic crisis . `` I do n't deny that the Chinese economy is facing downward pressure and multiple risks , '' said Li Keqiang at a nationally televised press conference . `` The key is to find the balance between stable growth and structural adjustments under the new normal ( of slower growth ) . '' `` We have n't adopted the policy of strong short-term stimulus in recent years -- in other words ... we still have plenty of tools in our toolbox , '' he offered . Earlier this month , the People 's Bank of China -- the central bank -- cut interest rates to guard against deflation and the country set its lowest growth target in 25 years . Li , the No . 2 leader in China behind President Xi Jinping , also promised a further streamlined government to strengthen the role of free market in the economy . `` The pain of reform is still there , actually the pain is becoming more acute and in more places , '' he said . `` During the course of reform , vested interested will be tested -- but this is not nail clipping , this is like cutting off one 's limb with a sword and we have to do it despite the pain . '' Li held the highly choreographed annual press conference -- often the only occasion a senior Chinese leader faces the media -- after China 's rubber-stamp parliament approved the government budget and concluded this year 's 10-day session . Li answered questions from pre-selected journalists that focused on the economy and touched on the government 's stance on the anti-corruption campaign , the environment and foreign policy . Before he was ushered out of the ornate room , the premier responded to a question shouted from the audience about Myanmar , whose warplanes reportedly dropped a bomb Friday in a Chinese border town and killed four civilians . `` We have the responsibility and capability to firmly safeguard the stability of the Chinese-Myanmar border -- and will firmly protect the lives and property of our citizens , '' Li said to applause from Chinese reporters .
Chinese premier says economy faces multiple risks . Reform is like 'cutting off a limb , ' he adds . Highly choreographed press conference only time leader faces media .