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"From a negotiation perspective, it's a powerful tool. From a market perspective, it leads to increased uncertainty. In the near-term, we would expect to see volatility in markets as they attempt to price in the net impact of tariffs," said Michael Olivia, a financial planner with Westpac Wealth Partners.

"Harrison opened another door for this instrument," said Wu. "It has an Asian flavor, but it is obviously beautiful California, full of sunshine, just like Harrison himself."

"For the overseas market, the independent system has more autonomy, greatly increasing the cooperation possibility and the degree of freedom, which can even attract the integration of external capital and the exchange of technology. Plus the background of its parent brand BYD, the newly established brand will definitely bring in benefits," said a report from MiVoGarage, a Shanghai-based automobile WeChat official account on the industry.

"Given the rising external uncertainties and the possibility of escalating tensions with the US, structural reforms to broaden the home market and boost domestic demand will help China offset some negative impact from a deteriorating external environment and shrinking external demand," Zhang Ming, an economist at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, said in a research note.

"Foreign-funded companies should not be worried," he said.