Chinese stocks slipped during Tuesday's trading despite assurances from the country's state planner that China's business environment is conducive for the private sector.

The Shanghai Composite Index, the main gauge of Chinese stocks, slid 0.93% or by 31.34 points to 3,324.49. The Shenzhen Component Index declined 1.61% or by 173.80 points to 10,617.26.

A key official at the National Development and Reform Commission assured the private sector that China's political, economic, and social environment is "very conducive" to development, Reuters reported Tuesday, citing state broadcaster CCTV.

NDRC Deputy Head Zheng Bei said the country will break down barriers to investment and will amend its negative list or market access restrictions, the report said.

The statements come after President Xi Jinping met with leaders from the private sector on Monday, including Alibaba Group (HKG:9988) founder Jack Ma, promising policy stability.

Elsewhere, Goldman Sachs boosted its 12-month target for the CSI300 index to 4,700 from 4,600 and for MSCI China to 85 from 75, citing artificial intelligence adoption as an ingredient for earnings growth, Reuters reported.

Meanwhile, the Chinese government called on the US to "correct its mistakes" after the State Department erased previous wording on its website about non-support for Taiwan independence, Reuters reported.

On the corporate front, China's new energy vehicle sales surged 29% to 944,000 units in January while sales increased to 1 million units.

Following the development, BYD's (SHE:002594) Shenzhen shares closed 2% higher.

Elsewhere, Sany Heavy Industry (SHA:600031) closed 2% lower during Tuesday's trading. The fall follows reports it is mulling a listing in Hong Kong for up to $1.5 billion, Reuters reported the same day, citing two people familiar with the matter.