Zhang expected external demand to remain weak for a very long period of time, while rising costs domestically would press China's manufacturers to accelerate industrial restructuring.

"I think capital inflow to the low-end manufacturing sector will slow when the country decides to focus on the real economy," Zhang said, adding that advanced manufacturing and high-tech foreign-funded enterprises are more likely to benefit from China's industrial restructuring.

Data from the Ministry of Commerce showed that China attracted 116.01 billion U.S. dollars in foreign direct investment (FDI) last year, up 9.72 percent year-on-year despite external uncertainties.

Although rising labor costs may have had an impact on attracting FDI, the government's moves to expand domestic demand amid rapid urbanization would make China very attractive to foreign companies like John Deere, said He Shushan, a deputy to China's top legislature from northern Tianjin municipality.

Premier Wen said in his report to the parliament that expanding domestic demand -- consumer demand, in particular -- is essential to ensuring China's long-term, steady, and robust economic development and will be the focus of government work this year.

"We will move faster to set up a permanent mechanism for boosting consumption," said the premier.

Spurring demand in rural areas is one of the government's prioritized policies, which include subsidies for agricultural production.

The Chinese central government spending on agriculture, rural areas and farmers exceeded 1 trillion yuan (158.73 billion U.S. dollars) last year, or 183.9 billion yuan more than a year before, according to Wen's report.

"All of that is a clear indication to us at John Deere that the prospects for agriculture here in China are tremendous," said Gakstatter.

He noted that the Chinese government understands China will continue to undergo significant urbanization and be very focused on food security and the overall development of agriculture.

What differentiates China from any of the other markets is not only the speed of change, but the pace of growth, Gakstatter said, adding, "Pace of growth is very phenomenal in China over the past couple of years."

"That's really what causes us to continue to be optimistic about the future of China and how we should continue to be aggressive in investing in people and processes and new products and in new facilities," he added.