According to a survey conducted by AmCham, more and more US companies operating in China are opposed to the use of tariffs to resolve the trade dispute. Moreover, many of these companies are in economic loss
Trade tensions between China and the US continue to have new opponents. And this time it is the same US companies in China that continue to see their profits decline. According to a survey by the American Chamber of Commerce (AmCham) in Shanghai, in fact, about 75% of US companies disagree with US President Donald Trump’s use of tariffs to resolve the trade dispute. Furthermore, the number of opposing companies is growing, calculating that last year they were 69%.
According to a statement by the Chamber in 2019, China Business Report published on Wednesday, only a quarter of these companies think that the United States should use reciprocity in trade and market access to achieve a balance in trade.
Ker Gibbs, president of AmCham Shanghai, commented: “The tariffs and the trade tensions are eroding their profits and investments. If the US continues to use tariffs as the primary tool for achieving its trade and investment aims, we risk not only US jobs and company profits, but also giving up the market share in China to European and other international competitors. That market share will be hard to win back.”
Only 61% of US companies are optimistic about business prospects in the next five years
US companies are also opposed because twenty-seven percent of respondents report lower revenues in 2019, compared to 6.1 percent in 2018. The cause of these losses, according to the forty-six percent of them, is the trade conflict for weaker sales.
Because of this climate of tension that does not seem to diminish, it, therefore, seems natural that there are few companies that plan to increase investments in China. In particular, the percentage of companies that want to invest more has fallen to 47% from 62% a year earlier. Nearly 23 percent expect to reduce investments this year.
The most pessimistic US companies on the future are non-consumer electronics and chemical companies
Meanwhile, commercial tensions do not yet seem to find a solution. Indeed, although Beijing and Washington have agreed to return to the negotiating table next month, there is no sign that agreement will be reached.
However, despite trade tensions, China did well for US companies. Logistics companies, for example, have made large profits. This is probably why, as confirmed by a report conducted by AmCham last November, China is always a priority for US companies
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