Chinese Minister of Finance Xie Xuren on Wednesday warned of uncertainties and instability in the world economy that will create many difficulties and challenges for China's economic development and social governance.

In a statement on the ministry's website, Xie noted that it is more pressing and more difficult to solve structural problems that are making China's development unbalanced, uncoordinated and unsustainable.

"New problems have emerged in our economy, as long-term and short-term issues are interwoven while domestic and international complexities are interconnected," he said, without giving further details.

Xie said the challenges require policymakers to be more skilled in implementing economic macro-control policies.

The minister reiterated that the Chinese economy is basically "in good health" and boasts quite a few favorable conditions.

"China is still in a vital period of strategic opportunities for development," Xie said.

The Ministry of Finance will deepen the reform of fiscal and taxation systems such as replacing the business tax with a value-added tax (VAT) in more cities to support reforms in prices and the financial sector, he added.