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And when 5G network coverage is very limited in China and no telecom carriers have officially launched 5G data packages so far, selling 5G smartphones does not make much sense. Most consumers can only enjoy 4G services even if they have 5G handsets.

Andy Jassy.

Andrea Manca from the University of York says: "It's important to remember that a healthy population produces more, increases the economy, and puts less burden on the healthcare system. So, a country's budget can be invested in other areas with research or investment priorities."

Analysts said the new investment law sends a positive signal to the world that China will better protect foreign investors in the country. “It showcases China’s will to continue to encourage and protect foreign investors, and I expect it to take more forceful measures in that direction,” Liu said.

Analysts believe the slowdown reflects the fact that the Chinese economy is shifting from the energy intensive industry to service industries with lower energy intensity.