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"Competition is definitely fierce," said Zhao Huanyan, chief analyst at Shenzhen-based hospitality consultancy Huamei. "For platforms like Fliggy, scaling by gathering more hotel resources is a prerequisite before technology can make a difference and generate profits."

"China will keep close communication with all parties in a manner that is objective, just and responsible," Wang added.

"Chinese are sensitive to exchange rates," Becker said.

"Chinese companies are capable of making most aircraft components, but are less competitive due to higher costs and the design and quality can't catch up," Shanghai Securities Journal quoted an unidentified senior aircraft engineer as saying.

"Cross-Straits relations are challenging and complicated. Under the common political foundation of upholding the 1992 Consensus, which refers to the one-China policy and opposes 'Taiwan independence', we are willing to stay in communication and enhance dialogue with the KMT to maintain peaceful development of cross-Straits relations," said An Fengshan, spokesman for the Taiwan Affairs Office of the State Council, China's Cabinet.