AmCham warns: many US companies foresee to lose their profits in China

13/09/2018

 

According to the last survey from AmCham, Half of the US companies in China foresee to have many difficulties due to the new tariffs imposed by the trade war

 

Two business lobby groups had conducted a survey to understand what the American companies operating in China are expecting from the new tariffs as trade war escalates. According to a survey, three quarters of the American companies operating in China expect to be harmed.

Going more specifically, the American chambers of commerce (AmCham) in Beijing and Shanghai found that firms foresee loss of profits, higher production costs, lower demand for products and reduced staff levels.

 

In the survey 74.3 per cent of respondents said the punitive tariffs would have a “negative impact”

 

An interesting fact is the change in opinion of American companies operating in China. In fact, when asked to express an opinion in cases where the White House fires the next round of duties at $ 200 billion of Chinese assets destined for the United States, more than 47% of businesses said they expect a “strong negative impact”.

Only two months ago, however, 62% of those interviewed in another AmCham survey planned to increase their investments in China, convinced of the potential of this giant market.

Eric Zheng, chairman of AmCham Shanghai, said in a statement: “If almost a half of American companies anticipate a strong negative impact from the next round of US tariffs, then the US administration will be hurting the companies it should be helping”.

 

The US has so far imposed levies on US$50 billion in Chinese goods

 

“We support President Trump’s efforts to reset US-China trade relations, address long-standing inequities and level the playing field. But we can do so through means other than blanket tariffs” continued Zheng.

But there are not only predictions, but also certain and verifiable data. Another survey, in fact, showed that the 11.8 percent of American companies in China have cut the number of employees. So the difficulties for American companies in China are already visible.

 

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