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"China's smartphone market may see a short period of stagnation with vendors refocusing on research and development, relying on new use cases to excite interest rather than spending heavily on the channel and marketing," he said.

"Currently, the glaring issue in rural areas is the inadequate garbage sorting and sewage, and the new action plan is prioritizing tackling these issues," Li said.

"China's demographic dividend is disappearing," Wang Bin, co-founder and president of the venture and technology-focused media platform iyiou, said during a recent annual innovation conference in Beijing, adding that seniors can be relied upon as a reliable market.

"Chinese people once transported many commodities like tea to India through the Ancient Tea Horse Road (a trade link in Southwest China, extending to South Asia). The history of trade may partly explain our similarities," he said.

"China provides a good ground base to experience future tech advances and develop future business models. It's likely they will use China as a testing ground for products before bringing the manufacturing and products to other places," Hsu said.