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"Chinese startups are gearing up to change the game of starting a business abroad. This is the right time for Chinese startups to venture overseas," said Zhou Wei, founding partner of Beijing-based CCV.

"Consumers in the US and China are unequivocally the losers from trade tensions," the study said.

"Consumers now have higher expectations for online-to-offline business," said Bruno Lannes, a partner at Bain & Co, the global management consulting firm, in China. "Retailers must come up with new models."

"Chinese consumers want diverse, quality products, and a nice consumption environment," said Yu, adding that spending on health, convenience and personalized lifestyle products has risen.

"Chinese reactions are fully justified," Hufbauer said. "Microsoft needs to deal in a respectful manner to maintain its reputation for fair dealing in China."