China is committed to transforming its manufacturing sector by leveraging the latest technology to meet diverse demands, Chinese Premier Li Keqiang said on Tuesday.

"Manufacturing is the foundation of China's development and the key for China's manufacturing sector is to move up the value chain," Li said during a session with business executives at a meeting of the World Economic Forum in the northern Chinese city of Tianjin.

Manufacturing will have to become "smarter," relying on technology such as the Internet, cloud computing and big data, and the sector must adjust to changes in market demands, like customization, he said.

Tailoring products and services will help companies appeal to China's swelling middle classes, according to the premier.