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"China has a significant market growth potential of its 5G network and it has been leading the development of 5G. This year, 5G will cover 50 cities, and about 300 cities will get 5G connections next year. In the year after that, the connection is likely to be available nationwide," said Xiang Ligang, a telecom expert and chief executive of industry website Cctime.

"China is taking the lead in the area of internet economy where there is huge room for cooperation," said David Liao, president and CEO of HSBC China, at a recent forum held by the multinational banking and financial services institution in Beijing on the China-ASEAN economic corridor.

"But the competition will be even more fierce than in shared-bikes," he told a forum organized by US tech media TechCrunch on June 19 in Shenzhen. He said the winners in the battle would emerge in about half a year.

"But once the company goes public in the future, it will definitely be eye-catching ... in its scale, valuation or performance," he added.

"But the US Chamber would strongly disagree with a decision to impose sweeping tariffs," Donohue said in a statement released on Thursday.