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"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."

"Chinese companies may overlook the regulatory and compliance complications of investing in the country. These include an intricate tax regime and stringent rules around employment and data protection."

"China's government is committed to further reforms, as shown by recent news on opening up the financial sector to foreign investors, increasing daily trading quotas on the Stock Connects, and potentially extending the Stock Connect program to London," Shi said.

"Chinese culture and books are inseparable overseas, and most foreigners get to know Chinese culture from these books," said Zhu Yongliang, deputy president of Zhejiang Publishing United Group.

"Customers who bought goods outside were scratched by broken glass," he said.