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"Customized solutions can be offered to large manufacturers with complex needs for digital transformation and tried-and-tested package solutions to small businesses so that they can be connected at a lower cost," Zhang said.

"China's strengths are mainly shown in AI applications and it is still weak on the front of core technologies of AI, such as hardware and algorithm development," the report noted. "China's AI development lacks top-tier talent and has a significant gap with developed countries, especially the US, in this regard."

"China's urbanization has been further advancing along with the development of the Belt and Road Initiative. It began in coastal areas and eastern city clusters, and then extended to China's midwest regions, leading to the rapid development of a host of lower-tier cities," said Ding from Nielsen China.

"China's steel and iron sector has been experiencing a sluggish market this year. Producers should step up efforts to reduce costs and seek new revenues," Wang of the Lange Steel Research Center said.

"China's smartphone market is huge, and although it has fallen for two consecutive years, it still accounts for about 30 percent of the global market. In such a big market, there are many niche users, who will satisfy the survival of the niche brand itself," said Jia Mo, an analyst from global market research company Canalys.