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"By both measures, China has done extremely well and is still doing well," said Keidel, former senior economist in the World Bank's Beijing office.

"But, for the most part, prices are negotiated well in advance so many will be incurring a significant blow to their profitability," Mond said.

"China goes far ahead of the rest of the world in customer-oriented digital environment, with a huge amount of user data accumulated, and lags behind leading economies in the business-oriented digital environment, such as the manufacturing and supply chain," said Zhou Jieqi, a partner of EY Parthenon Transaction Advisory Services.

"China does not need to overreact to the trade conflict, but it should improve domestic reforms," said Bottelier.

"China is tracking to become the world's largest cheese importer in the years ahead. It is critical that the US dairy industry take part in that growth," said Tom Vilsack, president and CEO of the US Dairy Export Council. "This decision by China will chip away at the tariff disadvantage US suppliers face in China and improve US competitiveness in a rapidly expanding market."