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"China's central bank, the China Banking Regulatory Commission, and the State Council have all taken explicit actions in 2017 to reduce the expansion of debt - especially the mounting indebtedness of State-owned enterprises," said Roach in a recent interview with Xinhua.

"Currently, the overall risk of the country's financial system is controllable, but the financial sector is still in a risk-prone period due to multiple factors and is still facing a tough situation," he said.

"China will firmly take necessary actions to safeguard its own interests," Foreign Ministry spokesman Geng Shuang said at a news briefing on Wednesday.

"China still has a long way to go to beef up domestic smartphone screen production capacity, although progress is being made," Geng said.

"Chinese carmakers have surveyed customers and know they like them," he added.