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"But now our challenge is to make correct decisions for future competition, but you never know what your decisions made today may mean three or five years later," he said.

"China looks forward to more communication, coordination and interaction among the various free trade initiatives in the Asia-Pacific region, so that each can play its own and constructive role for less trade protectionism and a more open global economy," he said.

"China may increase the interest rates for open market operations following the possible US rate hike, but in a moderate way, a similar move as it took in December and March," said Yang, who also suggested a further cut in the cash that banks set aside as reserves when liquidity risk increases.

"China has to compromise in some areas, the US will have to compromise on others. What the EU and to some extent Japan are trying to do for the moment is talk to the US, talk to China, so at the end of the day everybody is around the same table."

"China and Russia will stay in close coordination to push for positive developments while upholding the authority of the UN, peace and security in the world, and the common interests of the international community," he said.