In a sign that he would not cave to pressure for more government spending to boost jobs, Mr Li said China has maintained steady growth "without resorting to massive stimulus measures".
When asked about the dilemma faced by Southeast Asian countries caught in the growing rivalry between Beijing and Washington in the Asia-Pacific, Li said China did not want to see its neighbours compelled to "pick a side".
"Our hope on the Chinese side is that, no matter what bumps this relationship may run into, it will continue to move forward in a positive direction", he said.
The premier affirmed Beijing's commitment to free trade, on which Chinese leaders have emerged as global advocates in response to Mr Trump's calls for controls on imports, despite complaints China is the most-closed major economy.
But Mr Li said previous doubts about China's economy had been disproved.
"Almost every year I have heard a prediction of the Chinese economy having a hard landing", Li told a news conference at the end of the annual session of the National People's Congress.
"We don't want to see any trade war breaking out between the two countries".
China has cut its economic growth target this year to around 6.5 percent from its 2016 goal of 6.5 to 7 percent, while vowing to push through reforms to tackle rising debt and guard against financial risks.
"But I believe that our economic performance in the past several years. should suffice to put a full stop to such prophesies of a hard landing".
"The depreciation of the Chinese Yuan against the dollar is quite modest", Mr Li said. The North conducted two nuclear tests and 24 ballistic missile tests previous year, deepening concern in Washington that it could soon develop a nuclear-tipped missile capable of reaching the USA mainland.
Data in recent weeks has shown the economy got off to a strong start to 2017, though growth appears to still be heavily dependent on credit, infrastructure investment and the property market. Despite that, China last month suspended imports of North Korean coal for the rest of the year, depriving Kim Jong Un's regime of a crucial source of foreign currency.
China takes an open attitude toward regional free trade arrangements that concern it and where the conditions are in place, Premier Li Keqiang said on Wednesday. "We welcome other partners to share with us in the development opportunities of China".
"This policy constitutes the political foundation of China-U.S. relations, which has remained unshaken in spite of the changing circumstances, nor can this foundation be undermined", Li said.