The ADB is working with local governments on various projects including clean coal technology, carbon capture, renewable energy and waste energy projects.

In 2013, the ADB's lending assistance to China totaled $1.54 billion, comprising 12 projects across four sectors: agriculture and natural resources, energy, transportation, and the urban and social sectors.

"Our total funding to China is relatively small. We want to work with the Chinese government in addressing environmental issues and poverty reduction, particular, in central and western China, so our projects are those that are demonstrative and innovative," Sharif said.

The bank is working with the governments in different provinces to address the need for technical education, among both the urban and rural populations, he said.

The ADB is also exploring innovative financing mechanisms to fund environmentally friendly projects in China.

The bank signed a memorandum of understanding earlier this month to support watershed financing in Guizhou province.

The ADB and the provincial government are working on a public-private funding mechanism for protecting the Chishui watershed, said Sharif. It is the first public-private-partnership fund for watershed protection in China.

A PPP is a long-term, contractual partnership between public and private-sector agencies to provide infrastructure and other services.

Total PPP funding for protecting the Chishui watershed is expected to reach 5 billion yuan, and if the model works well, it can be copied elsewhere in China, he said.

Li Jun contributed to this story.

China's H1 growth up 7.4%, showing economic resilience	Infographics: China's GDP growth since 1978