Shifting focus gives opportunities to others

China's structural shift toward an economy based on innovation and knowledge and driven by domestic consumption and services should be key to discussions at this year's two sessions, said Danae Kyriakopoulou, who heads research at the Official Monetary and Financial Institutions Forum, an independent think tank for central banking, economic policy and public investment.

"A successful rebalancing should allow China's economy to avoid the middle-income trap as it matures and develops," Kyriakopoulou said. The middle-income trap contends that countries can become stuck at a certain development level after losing their competitive advantage.

"The difficulty, however, will be striking a delicate balance between reducing the economy's reliance on credit, and allowing funds to flow from less-productive sectors of the economy to more promising ones, while at the same time avoiding sharp corrections that could damage growth."