A senior economic official said China's economy faces growing "uncertainty" in the international environment as well as insufficient domestic demand.

Beijing has set an ambitious annual growth target of around 5 percent, vowing to make domestic demand the main driver of the economy as an escalating trade war with the United States has hit exports.

It also has "full confidence" it can achieve that target this year, Zheng Shanji, chairman of China's National Development and Reform Commission, told a news conference.

"We have the basic support and guarantee to achieve this year's growth target of about five percent," Zheng said.

"We have full confidence in that," he said.

Zheng, speaking on the sidelines of the annual Two Sessions policy meetings in Beijing, acknowledged that "uncertainties in the external environment are further increasing."

He also said that "we are also facing some problems such as insufficient domestic demand, production and operational difficulties in some industries and some enterprises."

"However, we believe that these difficulties and challenges are in the process of development and progress, and they can all be overcome and resolved," Zheng said. | BGNES