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"Current indicators suggest China is especially suited for widespread adoption of autonomous vehicles," said Ting Wu, partner in McKinsey's Shanghai office and co-author of the report.

"China should consolidate the foundation for the stable economic performance with sound growth momentum," Li said.

"Compared to pure IT players, we find our competitiveness in our profound understanding and rich experience in clinical medicine," Ho said, adding the company's solid financial backing is another benefit.

"China's smartphone market is declining because consumers are holding on to their phones for longer, operators like China Mobile have reduced their smartphone subsidies, and device makers such as Huawei have launched fewer 'wow' models to tempt shoppers back into retail stores. Some consumers are finding their smartphones 'good enough' and are pausing on upgrading," Neil Mawston, executive director at Boston-based Strategy Analytics, said in an email.

"China's continuous efforts to open up the A-share market will also help," Wang added.