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China's newly approved Foreign Investment Law will also provide opportunities for Europe to further strengthen cooperation with China, given that it shows China's efforts to improve its domestic business environment, he added.

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 local government debt soared during an investment and construction binge following the global financial crisis in 2008. Well aware of the risks, authorities have rolled out a string of measures to reduce the local debt burden.

China's consumer prices and producer prices rose less than expected in January, official data showed on Friday.

China's crude steel output is estimated to exceed 1 billion metric tons this year. That will mark an increase of 3-5 percent year-on-year. But, the industry profitability this year is likely to stay flat and may increase modestly next year, according to the China Iron and Steel Association.