China and the United States have embarked on a commercial and technological standoff under President Donald Trump, the effects of which on the global economy and investor confidence are being felt.
(Beijing) Geopolitical tensions between China and the United States are by far and for the first time the main concern of American companies established in the Asian country, according to a study published Tuesday.
China and the United States have embarked on a commercial and technological showdown under Donald Trump’s former presidency, the effects of which on the global economy and investor confidence are being felt severely.
This trade war has resulted since 2018 in reciprocal customs surcharges affecting hundreds of billions of dollars in annual trade.
The past year has been marked by a “continued deterioration” in relations between Beijing and Washington “in virtually all aspects,” said the American Chamber of Commerce in China.
And the coronavirus pandemic has only “reinforced mistrust” between the two powers, she said in a report on the business environment in the Asian country.
According to the results of a House poll of its members, 78% of respondents say “rising tensions” between China and the United States are their main concern today.
This subject now supersedes by far and for the first time the rise in production costs in China (40%).
The relative opacity of local regulations comes in third place (37%).
Chinese competition is the fourth area of concern for US entrepreneurs – it was only in 10th place a year earlier.
Paradoxically, respect for intellectual property in China, one of Washington’s demands, has “improved considerably,” Lester Ross, a House official, said at a press conference.
But “that does not mean that all the problems have been solved”, he qualified.
Many American companies manufacture products in China which they then export around the world.
Despite the tensions, 85% of US companies surveyed do not plan to exit the Chinese market or relocate production. This figure is in line with previous years.
The report was produced at the end of 2020, when tensions between the two countries stalled.
The American Chamber of Commerce in China has 4,000 members from 900 companies.