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Analysts said foreign smartphone brands are attracted to China by its huge market potential. However, they may encounter steep challenges as China's smartphone industry is witnessing a slowdown and the competition among major smartphone makers is very intense.

And now is "not the time" to let a concern about fiscal deficits "get in the way of us winning this battle", Powell added.

Analysts said that Xiaomi's revenue rose as its smartphone business benefited from the restrictions imposed by the United States government on Huawei Technologies Co Ltd. But with Huawei resuming the production of 4G smartphones, according to reports, Xiaomi is expected to face stiffer competition in overseas markets next year.

And every time the High Court judges on the frontline of judicial review cases purport to apply the Basic Law, the act potentially makes a dent in Hong Kong's high degree of autonomy, Litton said.

Andrew Putnam, principal research hardware design engineer at Microsoft Research, accepts the award for Innovation of the Year at the 2017 GeekWire Awards.