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BEIJING -- China will quicken the pace of implementing the strategy of free trade zones (FTZs) and turn institutional innovation into a strong impetus for the country's development, President Xi Jinping said Thursday.

To speed up the implementation of FTZ strategy is an important part of a new round of reform and opening-up. China should aim for high-standard trade and investment rules, and strengthen its capability for allocating financial resources around the world and better serving the country's economic development, Xi said.

Xi made the remarks while speaking with lawmakers from east China's Shanghai in a panel discussion on the government work report delivered by Premier Li Keqiang.

Xi urged Shanghai to continue its leading role in spearheading the country's ongoing reform, opening-up and innovation drive, in an effort to make greater contributions to the nation's reform, development and stability.

"Innovation is the most important driving force for development," said Xi, adding that China needs to break through the system and mechanism barriers to innovation.

To adapt to the "new normal" of the economy, the key is to shift the growth momentum and aim at getting a bigger boost from science and technology innovation, stressed Xi.

The term "new normal" gained ground in China in May 2014, when Xi, during an inspection tour of central China's Henan Province, described the need to remain cool-headed as growth slows.

China's economic growth slowed pace to 7.4 percent in 2014, its weakest annual expansion since 1990.

China should turn innovation achievements into actual productivity at a faster pace, and the foundation of innovation is talents, said Xi.

"Whoever has the top-tier innovation talents can occupy the leading position on science and technology innovation," Xi said.

Being innovative in China's social governance should be based on people's fundamental interests, said Xi, adding that China should foster a team of professional community workers and encourage more service and management resources to flow to the grass-roots units.

Moreover, comprehensively strictly governing the Communist Party of China can guarantee the Party to accomplish many important undertakings with characteristics of the new era, he stressed.