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"China's role in VR development has been on the rise－95 percent of the world's VR equipment is produced in China, and much VR content in app stores now comes from Chinese developers," said Graylin. HTC currently accounts for 35.7 percent of the global VR headset market and about 52 percent of the market in China.

"China's digital transformation has developed at an unprecedented speed and has created huge and precious opportunities. The Chinese market has become one of our largest markets globally," said Kang Rong, vice-president of Microsoft Greater China.

"Compared with the world's largest spender on military affairs, the money China used for national defense in 2019 was only one quarter of that country's expenditure," he said."When it comes to per capita terms, ours was one 17th of theirs."

"Compared to the downturn seen in smartphone demand and many other segments in the first six months of this year due to the devastation caused by COVID-19, the smartwatch remains a popular consumer device segment," said Sujeong Lim, senior analyst from Counterpoint Research.

"Consumer products were among the sectors that were opened up quite early in China. Chinese brands are fast in their innovations of products. Our company is like a car that is shifting gear and using stored-up power, and we are waiting to accelerate and reach the full speed," Ai said.