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Another decision was the cancellation of production permits for 14 types of industrial goods. Production permits for goods relating to public security, public health and environmental protection will be replaced by mandatory certification. A list of products will be compiled and released to the public.

Apart from the piloting of a registration-based IPO system on the ChiNext board, China has rolled out a raft of measures in recent years to make key institutional innovations, including the establishment of a sci-tech innovation board and the reform of the National Equities Exchange and Quotations, or the "new third board."

Another hydro-power construction project funded by the Chinese is still ongoing in the central part of the country providing hundreds of jobs to youth.

Antoinette Schoar, an economist who teaches at the MIT Sloan School of Management, said the Fed should remain "above the fray." "Fed policy should not have anything to do with politics," said Schoar, who is also attending the Jackson Hole conference.

Apart from its rich industrial resources, Shanghai's quest to become the home of leading AI companies is also largely supported by its access to young talent.