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Details of the planned California lab are still under wraps. Wang declined to identify BCTID's partner. "We value their skills and talents, and they appreciate our effectiveness, capabilities and business background," she said.

Despite the recovery, Zhu said there are risks facing industrial firms. "Market demand has not recovered completely, the drop in industrial goods prices has sustained, and cost pressure is still heavy."

Despite the pressure of the slowing global and Chinese economies, most companies from the European Union with operations in China regard the nation as a top-three destination for current and future investment, according to the annual European Union Chamber of Commerce in China survey published on Monday.

Disciplinary inspection commissions and supervision agencies nationwide received more than 2.3 million reports and letters complaining of such violations between January and September.

Digging machine sales in the domestic market went up 45.4 percent from a year earlier in Q1, while overseas sales surged 105.1 percent year on year.