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The Czech Republic is "hoping to finally get a bigger slice of the Chinese investment cake after long lagging behind neighbors such as Poland and Hungary," said Gambardella.

China has reduced steel capacity by 90 million tons and is going to cut its crude steel capacity by 100 to 150 million tons in the next fives years, he said.

The latest change ended the "one child" policy, which was implemented in the late 1970s.

While acknowledging increasingly austere challenges in the country's development, Yu stressed that China has a strong material foundation and its economy has great "potentials, tenacity and leeway," expressing confidence in the long-term prosperity for the Chinese economy.

He said "some officials have been forming cabals and cliques to covertly defy the CPC Central Committee's decisions and policies" and that they "risk compromising the political security of the Party and the country."