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Compared with 20 years ago, customers in China today attach more importance to quality over price, and the middle-income bracket would like to buy the best they can afford, he said.

Company executives said the two sides will have equal share in the newly formed company, and the deal will result in annual cost savings of about 3.7 billion euros (.22 billion).

Commercial banks, as well as the stock and bond markets, will undertake the majority of financing tasks, with the central bank ensuring sufficient liquidity to maintain a lower lending interest rate to make financing both efficient and affordable, according to analysts.

Compared with short-term assistance, ASA said it wants "long-term answers to the pinch of tariffs — or seeing the tariffs rescinded".

Comprehensively deepening reform is one of the "Four Comprehensives", a strategic blueprint drawn up by Xi that creates pathways to realize the Chinese Dream of national rejuvenation.