The country's economy is stabilizing and recovering, but still facing significantdownward pressure, Chinese Finance Minister Lou Jiwei said on Wednesday.

Speaking at a national financial work conference, Lou said the ministry will continue to ensurefunds to the construction of major projects to offer fiscal support, while cutting tax andadministrative fees to lower companies' costs.

China's economy posted a better-than-expected growth of 7 percent in the second quarter of theyear. The growth, though unchanged from the first quarter, was its lowest level since the globalfinancial crisis.

Lou said the ministry will continue to promote a public-private partnership (PPP) model forinvestment, regulate local government debt and promote "market-oriented transformation" oflocal government financing vehicles in order to turn these local government-backed investmentbodies into independent entities.

He also urged further advances in the country's tax reforms, which includes replacing turnover taxwith value-added tax and implementing consumption tax and resource tax reforms.