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The tribunal misinterpreted the United Nations Convention on the Law of the Sea (UNCLOS), catered to the Philippines' claims and violated the basic principle that rulings must be based on facts and laws. Its stance is neither fair nor objective, and its decision on jurisdiction would be unconvincing, said Xu Hong, the Foreign Ministry's director general of treaties and law.

The cities of Beijing and Prague signed a deal to forge sister city relationship on Tuesday. In fact, all 13 states of the Czech Republic have set up cooperative ties with provinces and cities in China.

Switzerland is willing to actively participate in the Belt and Road Initiative and the construction of the AIIB, he said.

"Moreover, the business tax imposed on sales ignores the fact that some SMEs are actually not earning any profit," he said. "Now they only need to pay tax for their gains, and at a lower rate."

The latest extension came four years after the first trial run of the services sector VAT reform in the financial hub of Shanghai. With that, the VAT has essentially taken the place of the BT in all sectors.