Some 92% of respondents to a survey launched Wednesday by the American Chamber of Commerce in Shanghai mentioned they had been dedicated to remaining within the nation even because the US-China relationship continues to fracture.
In response to the findings, greater than 1 / 4 of the US companies surveyed mentioned that they anticipated US-China commerce tensions to final “indefinitely,” in comparison with about 17% a 12 months in the past. In the meantime, a few fifth of respondents mentioned they anticipated the tensions to final for 3 to 5 years. That compares with 13% in 2019.
Solely round 14% of firms mentioned they thought the problem can be resolved inside a 12 months.
“What is probably going underpinning this sense of negativity is concern about broader US-China relations,” AmCham Shanghai mentioned in a report, which outlined responses from greater than 340 firms. The group mentioned it performed its survey between this June and July, simply months after the international locations introduced an preliminary commerce settlement, however as “a wider chill” started.
The annual survey is performed among the many 1,400 firms which might be members of the American Chamber of Commerce in Shanghai, a non-profit group which advocates free of charge commerce and goals to advertise US-China industrial ties.
Some 32% of survey respondents mentioned that the souring US-China relationship is affecting their means to retain employees in China. Some companies additionally mentioned they’d decrease funding in China attributable to uncertainty about commerce points.
Nearly 79% of firms that responded to the survey mentioned that they had no plans to maneuver their investments elsewhere. The few that did named Southeast Asia as their best choice.
Lower than 5% of respondents mentioned they deliberate to return operations again to the USA, making it the “fourth-choice location,” based on AmCham.
“American firms nonetheless see China’s shopper market as a terrific alternative,” mentioned Ker Gibbs, president of the American Chamber of Commerce in Shanghai, in a press release accompanying the information. He added that the nation has lately opened up some industries to overseas companies, together with insurance coverage and asset administration.
“US companies in China wish to see the 2 international locations resolve their excellent points rapidly and scale back tensions,” Gibbs added. “A workable cooperative framework for the following decade can be a superb place to focus discussions.”