As China and the U.S. battle over tariffs, locked in a tussle that could result in a deal or a trade war between the world's two largest economies, staying away from China's stock market is becoming the default option for foreign investors.

The ongoing U.S.-China trade war marks a dramatic shift in global trade dynamics, with China overtaking the U.S. as the world’s primary trade partner—reversing a long-standing trend where the U.S. held that dominant position.