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And if it wants, the government can be more subtle in directing investment toward Chinese cloud companies.

Analysts agree it is highly likely there will be a rebound in demand and supply of residential properties after the pandemic ends. In order to avoid price wars, home developers should ease their capital flow, and try to obtain prime lands at reasonable prices when the competition is not too fierce, Pan said.

Andy Rothman, an investment strategist at San Francisco-based investment firm Matthews Asia, said that it is still possible that the two can achieve reconciliation, "but only through dialogue and more engagement."

Analysts in Washington and Beijing have said trade and security issues, including the Korean Peninsula situation, will be highlighted during the trip.

Analysts said the park will ensure adequate energy supply in Yunnan as well as meet demand from the southern parts of China.