ISLAMABAD: As tensions grow between the world’s two biggest economies, United States companies are “more negative than they have been in a long time” about investing and doing business in China. American Chamber of Commerce in China (AmCham) President Michael Hart said the rivalry between the two countries has “made business very challenging.”
As US and Chinese governments have locked horns on a host of issues including the Ukraine war, the coronavirus, Taiwan and the Tiktok app, it has been reflected in AmCham’s latest annual survey of over 900 members working in China. For the first time, it shows that the majority, 55 per cent, no longer regard China as a top-three investment priority where they could spend money to do business.
The number of members who see the “uncertainty of bilateral ties” as their leading challenge in China has risen by 10 per cent in the last year to 66 per cent. At the same time, the number who think China has become less welcome to foreign companies has grown to 49 per cent.
The US imposed tariffs
It’s now five years since former US president Donald Trump imposed tariffs of $60 billion on Chinese goods as he stepped up his trade war over “unfair trade practices,” and also including intellectual property theft and the trade deficit.
China followed through on its promise to retaliate with tariffs of its own.
