China is aiming to expand its economy by around 6.5 per cent in 2017 as it continues to implement a proactive fiscal policy and maintain a prudent monetary policy, Premier Li Keqiang says.

Top leaders at the National People's Congress are tolerating slightly slower economic growth this year to give them more room to push through reforms to deal with a build-up in debt.

Xi Jinping, China's president, left, and Li Keqiang, China's premier, arrive during the opening of the fifth session of the 12th Chinese People's Political Consultative Conference (CPPCC) at the Great Hall of the People in Beijing, China, on March 3. Credit:QILAI SHEN

A lending binge and increased government spending last year have fuelled worries about high debt levels and an overheating housing market.

Gross domestic product grew 6.7 per cent in 2016, the slowest in 26 years, but within the government's target range of 6.5 to 7 per cent.