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"China resolutely opposes any country taking such freedom as a pretext to conduct illegal and provocative moves in the South China Sea, undermining sovereignty and security of littoral countries, and doing harm to regional peace and stability," Ren said.

"Coming as it does in the current context may add fuel to existing bilateral flames," Paal, now a distinguished fellow in the Asia Program at the Carnegie Endowment for International Peace, told China Daily. "It's the context of the US election and not the report that is crucial."

"China's development and progress is a long-term certainty, which offers the most important external environment for foreign businesses to work with China," Wang said.

"Clearly it's a question of market size, growth rates and ease of doing business here," Ker Gibbs, president of the AmCham Shanghai, told China Daily.

"Costco is good at building a loyal shopper base through its paid membership program with low prices and a select number of stock-keeping units. The question is whether they can replicate this in China easily," said Jason Yu, general manager of Kantar Worldpanel China.