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"Chips and software are closely bounded. That is particularly true in AI, as chips powering an application must be specifically designed. China's booming software market and large user base will allow homegrown companies to update chip design quickly based on user experience," said Roger Sheng, research director at consultancy Gartner Inc.

"Coupled with ongoing urbanization and rising domestic demand, powered by the Chinese government's measures to shift the economy to an internal consumption-driven model, the market potential in the Chinese mainland, particularly in lower-tier cities, continues to be attractive to jewelry retailers of all sizes," said Yang Lixin, director of the gemological training center for China's National Gem and Jewelry Technology Administrative Center.

"Competent departments must work jointly to enhance oversight and treat foreign and domestic businesses as equals," Li said.

"China should seize the opportunities to boost innovation in deep learning, smart algorithms and chips, and modernize industries with AI technologies," Lin Nianxiu, deputy head of the National Development and Reform Commission, said at the congress held from May 16 to 18.

"Connection networks" and "protection umbrellas" must be eliminated, while more efforts should be made to strengthen buildups in grassroots political structures and legal systems, State Councilor Guo Shengkun, head of the Commission for Political and Legal Affairs of the CPC Central Committee, said in a teleconference on Tuesday.