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"We express understanding and support for this (decision) and are keeping a close watch over the issue," Hong said at a regular press briefing.

A major annual drill held by the United States and the Republic of Korea known as "Key Resolve" will run from Feb. 27 to March 9. Another joint air, ground and naval field training exercise known as "Foal Eagle" will be held from March 1 to April 30.

Chengdu is the ideal place to hold the Fortune Global Forum. The city is in the heart of China's booming west and is becoming a leading center for higher education, a diverse range of technologies and industries, logistics and services to attract global companies, said Serwer.

Bao Yujun, president of All-China Private Enterprise Federation, said uncertainty over external demand and slower economic growth made it necessary for the government to rely more on private sector.

"China always develops ties with Arab and GCC states from a strategic height and a long-term perspective, and hopes to further enhance our cooperation and speed up negotiation on a China-GCC Free Trade Area," said the vice president.