SHIJIAZHUANG - Premier Li Keqiang said on Saturday that the key in well managing the current economic position is to keep the macro-economic policy stable and innovate regulatory approaches.

When talking with leaders of Beijig, Tianjin, Heibei and Shandong provinces, Li said China's economy is still growing at a relatively fast pace, also within a reasonable range, and the employment situation has been steady this year.

However, complicated factors are ahead, which need to be monitored closely, he noted.

"Scientific approaches are needed to ensure this year's social and economic goals are met," he said.

Li reiterated the importance of reform to vitalize the market and economy. The government should cut expenditure on its own administration and increase spending on improving people's lives.

Credit should be used to support the real economy while industrial overcapacity should be addressed, he added.

Talking about the rim of the Bohai Sea, which covers Shandong, Hebei and Liaoning provinces, and port city Tianjin, Li said it is one of China's most vibrant economic engines.

These areas have a population of 250 million and turn out a quarter of the nation's economic output.

Li said the region should accelerate reform and opening up further to the outside world. All-rounded efforts should be made to develop the region into a new pillar of the country's economic growth and restructuring.

He also stressed to take iron-fisted moves to promote safe industrial production and food safety. The economy should not grow at the cost of environmental pollution, he added.