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Analysts believed that the US efforts to impose milder sanctions were due to the fact that harsher actions would undermine the United States' own interests, and deal a blow to the dialogue between the two nations that had been initiated only a short time ago.

Analysts expect the regional bloc to maintain its neutral stance amid escalating China-US tensions.

Andres Borquez Basaez, director of Chinese Studies Program at the Institute of International Studies with the University of Chile, said the world economy was an interdependent system and US-China trade friction would cause damage to developing countries.

Analysts at many international institutions may have reached a premature conclusion that China's external demand will shrink by more than 50 percent and the shock to the economy from COVID-19 will be more severe than the 2008 global financial crisis. Their forecasts are based on assumptions that various countries will not roll out massive stimulus packages, and that international organizations will not effectively carry out international coordination of risk management.

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