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As of December 2016, the number of internet users in China had reached 731 million, more than the entire population of Europe, and some 95 percent of netizens, or 695 million people, connect to the web via mobile devices, data from China's Internet Network Information Center shows.

As high-tech products like industrial chips or automobile engines are critical to a country's industrial development, Tu said China will deploy more resources to boost core manufacturing innovation activities such as intelligent manufacturing, green manufacturing and high-end equipment innovation projects.

As many as 300 public lounges, covering all major cities in Hubei province, will be built by 2020, the provincial labor union said.

As of June, the province has pumped in 970 million yuan (141 million U.S. dollars) in drought-relief funds, with about 1.52 million people mobilized against the drought.

As indicated by recent action and comments, China will surely respond, as it does not want to appear weak vis-à-vis the US. But we continue to expect its response to be relatively restrained, with targeted measures rather than broad ones.