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"China recorded 1,255,258 arrivals, the most improved market at an impressive 29.62 percent growth rate," the DOT said in a statement.

"Chinese manufacturers were often regarded as resource-intensive or labor intensive ones, but lack of competitiveness in high-tech products. As one of the stated-owned enterprise, we felt obliged to change the stereotype of Chinese manufactures and try to compete with foreign companies in some high-tech areas," said Wang.

"China's smartphone market is forecast to drop 12 percent in 2018, which definitely weighed on all vendors, but it is worth noting that even within such a tough situation, Chinese players Huawei, Xiaomi Corp, and Vivo all managed to maintain growth in the first nine months of last year. In the same time frame, Apple, however, dived 12 percent," Jia said.

"Compared with previous measures, the new round of development will be characteristic with more permission granted to the Pudong new area government in economic regulations, administrative approval, planning and governance," said Ma.

"China regulations are also so strict that in many cases, they are even more strict than in central Europe or Finland. It's good for the whole industry to have more firms operate in a sustainable way," said Nikkila.