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"But the US dollar remains the wildcard. If and when the greenback strengthens again, the renminbi will come under renewed pressure, reigniting capital outflows. Then we cannot rule out a further clampdown on outflows, in order to safeguard foreign exchange reserves," he said.

"Cellphones made by domestic brands are a friendly price and perform excellently," he said. "I know lots of foreigners who use cellphones made in China. The country is an emerging superpower that is surprising the world with its innovation and marvelous power of action."

"Carryover effects will markedly diminish after July, while CPI is expected to climb by around 2 percent year-on-year for 2018," Liu said.

"China continues to defy predictions of a hard landing," said Jan Dehn, head of research at Ashmore Investment Management Ltd.

"But we worked through that. The salary and benefits here are comparable to US companies, our relations with the unions are good, and real promotion opportunities are there," he added.