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"China is already in the driver's seat with respect to the adoption of IoT technology, mainly driven by favorable government policies and fierce market competition inside the world's largest electronics manufacturing powerhouse," said Charlie Dai, principal analyst at Forrester, a business strategy and economic consultancy.

"By doing such business, more SMEs are setting up their warehouses, customer services and a complete supply chain in foreign markets. Gradually, SMEs are able to serve customers overseas, just like big firms," Lou said.

"But that requires a high degree of competence and the use of big data, which is another field where Alibaba and Tencent are both leading the way," Crabbe, of Mintel, said.

"China has always been mysterious and interesting to me, with its history," he says.

"But the price wouldn't go up much even if it rises," he said.