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"Compared to the downturn seen in smartphone demand and many other segments in the first six months of this year due to the devastation caused by COVID-19, the smartwatch remains a popular consumer device segment," said Sujeong Lim, senior analyst from Counterpoint Research.

"Consumers nowadays prefer immersive shopping experiences, and we want to make this flagship a place where we can not only better communicate with them about our product and values but also better understand their needs," said Wang Tao, head of RELX's new retail business.

"Companies can put the money saved into research and development or use it to tap into new markets," Xu said.

"Chinese brand's performance results from its less successful product development and, more importantly, their undue efforts to cut prices," said Fu Lianxue, a senior expert at the center, in an interview with China Economic Net.

"China runs a surplus in trade with the US, while the US enjoys a surplus of benefits," Fu said.