Rising US-China tensions top concerns of American firms in China, US trade group finds

Among American companies operating in China, US President Donald Trump’s return to the White House has coincided with growing concerns about a further deterioration in relations between the world’s two largest economies, according to findings outlined in the annual survey report of a US business lobby.

And respondents increasingly identified the escalation of US-China tensions as their top challenge over the past five years.

In all, 51 per cent of 368 member companies concurred on the issue – the highest percentage in five years, according to the report from the American Chamber of Commerce (AmCham) in China, which was based on a survey conducted from October 21 to November 15, spanning a four-week period that overlapped with Trump’s November 5 election.

“US-China relations remain the most consequential bilateral dynamic in the world today, and understanding the perspectives of our members has never been more important,” AmCham China chair Alvin Liu said. “A stable and constructive relationship, grounded in economic and trade ties, is critical not only for the prosperity of our two nations but also for global economic stability.”

The escalating bilateral tensions have intensified the reluctance of US companies to invest in China. While 48 per cent of respondents viewed China as one of the top-three global investment priorities, the proportion of companies that no longer considered China a preferred investment destination has sharply increased – from 10 per cent before the pandemic to 21 per cent in the latest poll.

Meanwhile, the percentage of companies relocating production or procurement operations away from China has increased to 17 per cent of surveyed participants, up from 11 per cent a year prior