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Analysts said that the current policy of increasing infrastructure investment may keep the country's economic growth from continuing to fall, but it will not be adequate to raise growth. They said if the country's economic growth continues to weaken, China may further cut taxes and lower interest rates to boost manufacturing and consumption.

Angelo Bonati, CEO of Officine Panerai, an Italian premium watchmaker, once jokingly said, "In today's global watch market, not paying attention to the Chinese market is like a blind man walking."

Analysts said the cooperation will extend a helping hand to the joint venture as well.

Analysts said the State Grid, as well as other grid companies, are likely to raise their investments in pumped storage in the coming years.

And, while expressing its confidence in the local authorities' capabilities to restore order, it has repeatedly urged foreign powers to refrain from stoking the violence by word or deed.