A new survey has revealed that more than half of American businesses operating in China are increasingly worried about the potential for further deterioration in the bilateral relationship between the world’s two largest economies. According to the American Chamber of Commerce (AmCham) in China, 51% of respondents expressed concerns over the future of U.S.-China relations, marking the highest level of apprehension in five years.
Released shortly after U.S. President Donald Trump began his second term with a renewed threat of increasing trade tariffs on Chinese imports, the survey highlights growing unease among U.S. companies in China.
Alvin Liu, Chair of AmCham China, emphasized the critical importance of a stable and constructive relationship between the two countries for both their prosperity and global economic stability. He noted that economic and trade ties remain central to this relationship.
Geopolitical tensions, policy uncertainties, and ongoing trade disputes were identified as the primary concerns for U.S. businesses in China, according to AmCham. The survey, which included responses from 368 AmCham member companies, was conducted between October and November of the previous year, coinciding with Trump’s election victory on Nov. 5.
The survey comes amid continued fallout from the trade war between the U.S. and China, which began during Trump’s first term and has not significantly improved under President Joe Biden’s administration.
On Tuesday, Trump announced that his administration was discussing the imposition of a 10% punitive tariff on Chinese imports, potentially taking effect on Feb. 1, in response to China’s involvement in the global supply chain of fentanyl.
Despite these concerns, almost half of the businesses surveyed still rank China among their top-three global investment priorities, maintaining the same level as last year. However, the proportion of companies that no longer consider China a preferred investment destination has more than doubled to 21% compared with pre-pandemic levels and rose three percentage points from the previous year’s survey.
In addition, about one-third of firms reported experiencing unfair treatment in China, particularly concerning market access and public procurement, similar to last year’s figures. These issues continue to be significant challenges for foreign businesses operating in the country.
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