DAVOS, Switzerland (AFP) - China's economy is not set for a sharp slow down, Prime Minister Li Keqiang told business and government elites gathered in Davos on Wednesday, as he sought to allay fears over the Asian giant's growth outlook.

"What I want to emphasise is that regional or systemic financial crises will not happen in China and that the Chinese economy will not head for a hard landing," Li said.

"If I could compare China's economy to a running train, this train will not lose speed or momentum but will be powered by a stronger engine."

Li's special address at the World Economic Forum's annual meeting came a day after China posted its weakest growth in a quarter of a century.

The 7.4 per cent announced by the National Bureau of Statistics (NBS) was slower than the 7.7 per cent seen in 2013, raising concerns at a time when the global economy is looking to the Asian giant to maintain growth momentum.