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"China's smartphone market is huge, and although it has fallen for two consecutive years, it still accounts for about 30 percent of the global market. In such a big market, there are many niche users, who will satisfy the survival of the niche brand itself," said Jia Mo, an analyst from global market research company Canalys.

"Compulsory education should not only be free but, more importantly, free of exams," Yang said.

"Companies can ride the rising demand to focus on other high-tech, value-added products. Domestic toy manufacturers' competitiveness reflects not only in their price labels today but in their development capacity as well as intellectual innovation."

"Companies are looking to reduce costs and rejig equity structure, along with an expanded focus on innovation-led development and structural upgrade."

"Competition between countries is intensifying in strategic emerging industries such as semiconductors, telecommunications and supercomputers. Whoever seizes the market opportunity will have the first-mover advantage and gain large-scale profits," said Guo from the CASTD.