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China's local governments are also working to attract private capital into cash-strapped strategic emerging industries, which have found it difficult to get bank loans as many start-ups are yet to turn patents and intellectual property into profits.

China's labor is becoming expensive too, and more skilled. So, China needs to move away from setting up industries that basically service imports from East Asia. Instead, China should set up industries that are indigenous and can use innovation to produce new products. The country is already doing this quite well. China has beaten the US in 5G, and leads in artificial intelligence.

China's new energy vehicle segment is yet to see monthly growth after the first drop emerged in the second half of last year. In the first half of this year, their combined sales were 393,000 units, down 37.4 percent year-on-year, according to the CAAM.

China's influence on the global economy is far greater than its own weight. More importantly, such influence is also reflected in China's presence at the core of the global supply chain. Over the past decade, China has become the center of the global supply chain network, with import and export of intermediate products accounting for a relatively high proportion.

China's healthcare spending as a percentage of GDP grew from about 2 percent in 2005 to 3.5 percent in 2009 when the reform started, to about 6 percent today. In a time of rapid GDP growth, this was almost a tripling of real healthcare spending. Total expenditures are now about 4 trillion yuan (5 billion) and research by Deloitte Analysis predicts it will top 8 trillion yuan by 2020. By 2030, total Chinese spending on healthcare will reach 16 trillion yuan, 10 percent of that year's expected GDP.