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Analysts say that while there is little doubt that NEVs will eventually prevail, how long the switch takes remains to be seen and depends a lot on infrastructure and technology improvements as well as how fast automakers can adapt.

Analysts at many international institutions may have reached a premature conclusion that China's external demand will shrink by more than 50 percent and the shock to the economy from COVID-19 will be more severe than the 2008 global financial crisis. Their forecasts are based on assumptions that various countries will not roll out massive stimulus packages, and that international organizations will not effectively carry out international coordination of risk management.

Analysts said the new company's establishment is in accordance with China's plan to boost non-polluting power's role in the country's energy mix, as well as the coordinated development of the Beijing-Tianjin-Hebei region.

An on-site and online signing ceremony for the projects was held in Haikou, capital of Hainan province on Saturday, with the total value surpassing 6.4 billion yuan (about 3 million). They cover free trade port construction, industrial development and public services.

Analysts said the agreement was a "wise" step, since high-quality content plays a decisive role for leading online education companies.