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"Foreign investors put more value on structural changes in the China market rather than the size and growth potential of the market. In addition to the appeal of China's capital markets, the launch of a registration-based initial public offering system and new rules on asset management also boosted their confidence in achieving success in China's capital markets," Qu said.

"For molten iron at a temperature of 1,500 C, we can bring it down to less than 200 C within a millionth of a second," said Guo Gang, vice-president of Yunlu.

"Frankly, this is the final straw," he tweeted. "Tesla will now move its HQ and future programs to Texas/Nevada immediately."

"Foreign investment in the sectors of securities, asset management and insurance will see rapid growth in the next few years as China further opens up the financial sector," said Zhang Xiaotao, dean of the School of International Economics and Trade at the Central University of Finance and Economics.

"Further escalation would be counterproductive. It would simply ensure an economic cold war between the US and China, at least until January 2021 and perhaps much longer," he said. "This would be a 'lose, lose, lose' proposition."