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China's foreign exchange policy will likely continue to focus on maintaining healthy two-way fluctuations and stabilizing market's confidence in the Chinese currency, Ding said.

China's first Anti-Terrorism Law, which took effect in January last year, stipulates that rewards be handed out for anti-terrorism contributions. Three months later, Xinjiang offered a cash reward of up to 5 million yuan for people providing key information about plotters.

China's internet giants including Alibaba Group Holding Ltd and JD.com Inc have ramped up efforts to deploy offline channels as pure-play e-commerce growth starts to stagnate. Alibaba has completed a series of buyouts including retail chain Intime Retail Group Co, while JD backed Yonghui Superstores and announced plans to open 1 million namesake convenient stores in five years.

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 economic growth moderated to 6.2 percent in the second quarter, compared with 6.4 percent in the first three months.