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Analysts have warned that the lasting trade tension between the world's two largest economies would not only impact their own businesses, workers and consumers, but also stoke global market fears of uncertainty and disruption, and erode confidence in the long-term global economic growth.

"At present, relations between Iraq and China have developed very well, especially after China proposed the Belt and Road Initiative, in which Iraq was among the first Arab nations to join," Chen added.

"I've always wanted to start my own business, and the winter tourism helps me realize the dream," said Sun Linlin, who invested over 2 million yuan in her guesthouse.

Upon seeing the wide variety of imported products from Europe, Central Asia, and Southeast Asia in the zone, Piriya Khempon, ambassador of Thailand to China, said the trip had deepened his understanding of the Belt and Road Initiative, which he said is very important to Kashgar's development.

China is willing to work with the United States to summarize the experience of 40 years of the development of China-U.S. relations, and strengthen exchanges and cooperation in fields of economy and trade, military, law enforcement, anti-drug operations, local issues and culture, Xi said.