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Analysts warned that China's corporate sector was feeling the stress and expected a tougher time, as funding costs were rising and could rise further, while credit would become harder to access, especially for small and medium-sized firms.

And last year, the Chinese government started a seven-year automated agriculture pilot project in Xinghua, Jiangsu province. The project includes rice transplanters, pesticide applicators, fertilization equipment, and driverless tractors that are navigated via global positioning satellites.

Analysts from the securities firm said the government is expected to further cut taxes and fees, and provide more support for local infrastructure construction through special debt issuance.

And it is essential both parties are pragmatic. They need to show a shared sense of urgency in working together on the imperative task of defusing the dangerous time-bomb ticking on the Korean Peninsula.

Andrew Heath, Imagination's chief executive, considered the acquisition a good one, as it would ensure Imagination an independent IP licensing business with strong growth prospects.