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One of the main contributors to retail sales growth was automobile sales. While the total volume of sales only saw modest climb, the average sales price jumped, indicating that the demand for cars is more quality-oriented, according to Mao.

Both sides also agreed to boost maritime cooperation including exploring feasible ways of joint development.

For Stephen Roach, former chairman of Morgan Stanley Asia and the firm's chief economist, raising tariffs manifests the Trump administration's narrow fixation on an outsized bilateral trade imbalance with its partners, including China.

The debt restructuring policies for enterprises will be improved, and a bankruptcy mechanism for affiliated enterprises will be established. The cost of zombie companies going bankrupt will be borne through a cost-sharing mechanism between the government, enterprises and banks.

Karna's statement was echoed by the mayors and deputy mayors of Dhanusha and Rajbiraj, two districts that border India which were hard-hit by the floods.