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"Capacity is the foundation of output growth. As most of the advanced steel capacity built in the past years has already come into use, there will be little new capacity coming into operation in the future, which means less steel output," Chen said.

"China is one of the few major economies in the world that have maintained normal monetary policy and we are still far from using the unconventional tools, such as the zero and sub-zero interest rates," he added. "China has sufficient policy space to support steady economic growth. Equipped with a rich policy toolkit, China is capable of coping with various uncertainties."

"China had a better environment for innovation in 2017, with increased investment and output as well as improved effects," the NBS said in a statement.

"By supporting this sector with cheap credit, market access for their products and encouraging innovation, it will create avenues for partnerships that Chinese enterprises are looking for," he says. "Supporting a culture of pursuing further education would also boost their competitiveness."

"China doing better in 2020, is very important for China. It is also very important for the rest of the world given China's share in the world economy," the IMF chief emphasized.