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China pledged a more proactive and effective fiscal policy in 2017 to support economic growth, with the government fiscal deficit set at 3 percent of GDP, or 2.38 trillion yuan for the year, a year-on-year increase of 200 billion yuan.

China will also work to better protect intellectual property rights and further promote the use of negative lists for a more convenient and equitable policy environment for overseas investors, the premier stressed. Negative lists specify areas where investment is prohibited — all other areas are presumed to be open.

China made great advances in its innovation and the trend is expected to continue, said Cady.

China will also need to bolster its homegrown talent pool by strengthening education and career services for graduates, improve benefits for engineers doing basic research and support innovative and original work in electronic engineering and computer science, they said.

China needs to work hard on innovation