Even though most cities failed to meet the stricter air pollution standards, the government said it was confident of improving Beijing's air quality by 2017 — in line with a targeted PM2.5 level of 60 micrograms per cubic meter.

Top 10 cities with best air quality in China

Top 10 products minting most from smog

Li said the government would further enhance the country's energy efficiency and optimize the industrial structure, while taking measures against automobile exhaust and construction site emissions.

The government also vowed to enhance regional cooperation to fight air pollution.

Chai Fahe, vice-president of the Chinese Research Academy of Environmental Sciences, said he believed most major cities could reach the new standards by 2017 as long as the local governments are determined to carry out emission reduction activities.

Beijing, for example, can meet the targeted PM2.5 reduction as long as it sticks to scrapping old cars, suspending polluting industries and reducing coal burning, he said.

Chai also emphasized the importance of stricter air quality standards.

The tougher standards help the government pick up its pace in fighting pollution, he said.

The latest report showed that improving water quality nationwide also faced challenges.

According to the report, 27.8 percent of the 61 lakes and reservoirs being monitored had excessive nitrogen and phosphorus, while 59.6 percent reported poor or extremely poor water quality among the 4,778 monitoring spots for groundwater.

The soil quality of farmland was similarly worrying and regional degradation was serious, it said. 

Top 10 cities with worst smog in China

China's top 10 richest cities