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And from early June, it has been imposing unfair tariffs on imports from China and it continues to threaten more in its attempt to bring China to its knees. It has also imposed high tariffs on imports from other trade partners.

Analysts said some SOEs in the energy and heavy industry sectors suffer from overcapacity, and the integration will help reduce overcapacity and take advantage of both companies' strengths and resources.

And we talk about a surprising startup investment by two Seattle tech veterans, Zulily co-founders Darrell Cavens and Mark Vadon.

Analysts expect the regional bloc to maintain its neutral stance amid escalating China-US tensions.

Analysts said if the economic environment exacerbates, the government would beef up monetary, fiscal and other policy support on top of existing incentives.