American firms in China fearful of US-China trade turmoil at 5-year high, shows survey
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The annual survey by AmCham in China showed 51 per cent of respondents were concerned about a future deterioration in the US-China relationship.
PHOTO: BLOOMBERG
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SHANGHAI – More than half of the American businesses in China, the highest level in five years, say they are concerned about a further deterioration in the bilateral relationship between the world’s two largest economies, a survey published on Jan 23 shows.
The annual survey by the American Chamber of Commerce (AmCham) in China showed 51 per cent of respondents were concerned about a future deterioration in the US-China relationship.
It was released just days after US President Donald Trump took office for a second term with the threat of increasing trade tariffs on Chinese imports
“A stable and constructive relationship, grounded in economic and trade ties, is critical not only for the prosperity of our two nations but also for global economic stability,” AmCham China chairman Alvin Liu said.
Geopolitical tensions, policy uncertainties and trade disputes are the major concerns of US businesses in China, AmCham China said.
The survey of 368 AmCham China member companies was completed between October and November 2024, partly after Mr Trump won the presidential election on Nov 5.
His previous term as president was marked by a US-China trade war and general decline in diplomatic goodwill between the two countries that did not markedly improve during the tenure of then President Joe Biden.
On Jan 21, Mr Trump said his administration was discussing a 10 per cent punitive duty on Chinese imports that could be imposed on Feb 1 in relation to China’s part in the global supply chain of fentanyl.
Almost half of the respondents still rank China as a top-three global investment priority, around the same level as 2024.
But the proportion of companies that no longer list China as a preferred investment destination has more than doubled to 21 per cent compared with pre-pandemic levels and rose 3 percentage points from 2024’s survey.
Also around the same level as 2024 is the proportion of firms reporting unfair treatment in China compared with local firms – around a third of businesses – particularly in relation to market access and public procurement. REUTERS
