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But export controls will restrict the advancement of AI, especially in the US, said Shapiro. Chinese-made products can still be found easily in almost every category like high-definition TV, robotics and smart retailing, occupying about 14 percent of the net exhibiting space.

But industry insiders and government officials said there is still room for growth in the long term. "Compared with developed countries, there is still huge room," said Wang Bin, an official with the Ministry of Commerce at a recent news conference, citing statistics that 1,000 Chinese people have around 170 vehicles now, while the figure is around 800 in the United States and some 500 to 600 in Europe and Japan.

But a saturated market is forcing major brands to move upmarket with their dairy products, including high-end yogurts and milk, Southwest Securities stated in a report on the industry.

But cross-border relations have warmed after ROK President Moon Jae-in - who has championed dialogue with the DPRK since taking office last year - held a landmark summit in April with Kim Jong-un, the DPRK's top leader.

But now he fears his work is being undone.