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April 2015 onwards: CEO of Lixil Asia-Pacific

Apple said earlier it has committed to invest 3.5 billion yuan (0 million) in these R&D centers, so as to better tap into China's talents in manufacturing, app development, design and other sectors.

As Leung explained, equipment manufacturing as well as research and development are included in the Made in China 2025 strategy. These companies usually invest heavily in their early days in machines, plants and all other related facilities. It will take a long time before they finally register sales and profits. With the new policy, the VAT can be retained, which means that companies can enjoy a tax rebate when they eventually report sales results. It can largely secure their cash flow and relieve this tax burden.

As Changyong Rhee, director of the IMF's Asia and Pacific Department put it, China is expected to account for more than 30 percent of global growth this year.

Apple and Samsung continued to dominate the smartphone market in 2016, but their combined shipment slipped from 555 million units in 2015 to 526 million in 2016, with market shares dropping four percentage points to 35 percent.