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And he said: "Both sides need to be pragmatic and realistic and adopt a give-and-take approach. Only in this way, can we get over the thorny issues and reach an agreement."

Analysts said the latest regulatory measures put pressure on domestic companies, with the smaller players set to face the heat in the long term.

And, bigger than that, had the case continued, we could have had a robust, public debate about the rights of every worker, no matter where they work or their hours on the job to basics, like healthcare, retirement, paid leave, continuing education, and the other protections that, today, are reserved for those who land full-time employment.

Analysts say the new move will be helpful, especially with the automotive market seeing downward trends. Statistics show that car sales in the first 10 months dipped 0.1 percent, and a fall is expected for the whole year.

Andrew Downe, Asia regional head of commodities and global markets at Macquarie Group, said, "Megvii is a global AI technology leader and innovator with cutting-edge technologies, a scalable business model and a proven track record of monetization. We believe the commercialization of artificial intelligence is a long-term focus and is of great importance."