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"China has a large number of small and micro-businesses, and this helps create a large number of jobs in China," she said. "Yet such businesses also have clear disadvantages, such as being vulnerable to risks. This requires the government to give them more policy support, especially tax incentives, to help them grow steadily."

"China always respects the freedom of navigation and flights over the South China Sea in accordance with international law, but that should not be conducted in a wayward or illegal manner," Ren Guoqiang, a spokesperson for the Ministry of National Defense, said at a press conference.

"China is seeing a new wave of urbanization, with third- and fourth-tier cities beginning to emerge as sizeable urban clusters. With megacities arguably reaching their limits and gripes about quality of life rising, smaller cities have an opportunity to compete for talent and resources," said Wang Dan, China analyst at EIU.

"China is one of the most dynamic markets, where enterprises are aggressively pushing forward digital transformation, creating abundant growth opportunities," Crozier said.

"China could pursue more market-based economic reforms that would bolster confidence in the renminbi," said the department.