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"For a long time, the Chinese loved to buy their watches in Europe, in the shops on the Rue du Rhone in Geneva or in Paris. They liked to come back from their travels with an experience to tell," he said.

"Further opening up China's economy for foreign investment－including establishment of a nationwide negative list－will be key for productivity increases in the economy," said Bert Hofman, the World Bank's country director for China. "It will also contribute to maintaining an open international economic system, which remains key for China's future and healthy development of the world economy."

"First, their increasing manpower costs increase their cost of doing business in China. This may at first seem bad for China's competitiveness but, in the longer term, higher wages also mean that companies have a more productive, higher skilled labor pool to hire from," said Yu. "This would allow them to move up the value chain."

"Global talent is also needed. It is very difficult to rely solely on China's independent innovation to succeed. Why can't we embrace the world and rely on global innovation?" Ren added.

"For instance, as far as technological innovation is concerned, the SASAC will continue to encourage SOEs to increase research and development input, and treat R&D investment as profit," he said.