President Xi Jinping called for more reform and innovation on Monday as the country prepares to enter its 13th Five-year Plan period.

"Reform and development have achieved a high degree of integration. Further development needs to be based on reforms while progress in reforms gives a strong impetus for development," Xi said during the 18th meeting of the central leading group for comprehensively deepening reform.

The spirit of reform and innovation must be strengthened and the country's governance system shall be modernized, said Xi, who also heads the leading group.

Last week, the Communist Party of China (CPC) Central Committee announced a comprehensive proposal for the country's development over the next five years starting in 2016.

The leading group stressed that further reforms on mass organizations would be launched to make them more energetic and efficient.

The importance of creating a network of high-standard free trade areas was highlighted during Monday's meeting, which can better mobilize both domestic and international resources.

The leading group emphasized that the market should be allowed to play a decisive role in allocating resources, and the government should play a better role. In addition, China shall open its service sector wider.

Innovation was urged in processing trade so that China can gain a new edge in international competition while maintaining its traditional advantages. Consistency in government policy is needed to help processing trade develop and move up the global value chain.

China will attach greater importance to quality rather than quantity in foreign trade, with the aim of becoming an international trading powerhouse, according to a statement issued after Monday's meeting.

Plans to develop an inclusive financial system hope to improve the coverage and accessibility of financial services and meet the rising demand of the people, especially farmers, owners of micro-businesses, urban residents with low-incomes, the poor and the handicapped, it said.

City management will be improved to meet the demand for new-type modernization, it said.

China will pilot the construction of high-end think tanks to provide better policy research and consultation, it said.

In a comprehensive proposal for formulating 13th Five-year Plan, five development ideas are stressed, including innovation, coordination, green development, opening up and sharing.

These are crucial for the overall development layout, and further reforms will be launched in these directions, it said.