China still a developing nation, says Premier Li Keqiang as he signals country's plan to focus inwards

China was still a developing nation, Premier Li Keqiang said yesterday amid international concerns that the rising economic power is challenging the United States.

Observers say Li's remarks signal that although China is poised to take a more active part in international affairs, its priority will be on internal development rather than setting a new international order.

Li said China was already engaged in many international affairs and denied that it was a "free rider".

But China's per capita gross domestic product was 80th in the world and many people still struggled to make ends meet, the premier said.

"China still has 200 million people living in poverty based on the standard of the World Bank, and China is still a developing nation," Li said in response to a question on whether China was competing with the US as a leading power.

"China needs to run its own affairs well and maintain its development at a reasonable speed. I believe that, in itself, is China's major contribution to the whole world."