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"China's cross-border e-commerce is developing rapidly, and the logistics and freight transport system within the SCO countries has relatively improved, which in turn will boost economic and trade cooperation between China and SCO countries," said Lu Zhenwang, CEO of Shanghai-based Wanqing Consultancy.

"Companies that have business relations with the US have already felt the shock," said Li Jianwei, chairman of Hangzhou Euroluck Import and Export Co, a cloth and textile trader. Li said orders started falling from the second half of 2018 on fears of punitive tariffs, though textile was not included in the additional tariff list then.

"Current indicators suggest China is especially suited for widespread adoption of autonomous vehicles," said Ting Wu, partner in McKinsey's Shanghai office and co-author of the report.

"China's supply-side structural reform will lead to upgrades within industries, bringing improvement in efficiency and quality of companies," Tang said.

"China welcomes and supports both countries to use the 2018 Winter Olympics as an opportunity to make effective efforts to improve their relations, relax the situation on the Korean Peninsula and promote denuclearization of the peninsula."