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"China's economic condition continued to recover with business operation improving," Zhao Qinghe, a NBS senior statistician, said.

"Compared to the downturn seen in smartphone demand and many other segments in the first six months of this year due to the devastation caused by COVID-19, the smartwatch remains a popular consumer device segment," said Sujeong Lim, senior analyst from Counterpoint Research.

"China's well-planned industrial systems and sound infrastructure gives us the confidence to retain foreign companies. We will also work harder to create a better pro-business environment for them and offer higher-quality services," Huang said.

"Compared with the traditional online travel agencies, vacation rental platforms perform two key functions. One, they help landlords reduce operational and maintenance costs and also offer various value-added services to customers. Two, the platforms use sophisticated systems to support the entire social credit system," said Yu Fengxia, deputy director of the Sharing Economy Research Center, which is part of the SIC.

"China, like the United States, has a problem with an uneven distribution of wealth, which can result in social tension and popular resentment toward the moneyed class," Moser says.