"In China, this is viewed as a big win," Rory Green, head of China research for TS Lombard, said.

"The U.S. is a 'paper tiger' and Xi successfully forced Washington to treat China as an equal. [China was the] only country that retaliated and the only negotiations that occurred in a third country," Green added.

Green expects the 20% fentanyl tariffs to be lifted "fairly easily," noting China has increased its drug control efforts.