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BEIJING – US companies expect their lowest expansion rate in China since 2016 in response to growing uncertainty over US-China relations and the slowdown in the Chinese economy, according to a study by the American Chamber of Commerce in China.
About 32 percent of the 314 US companies that responded to the survey said they did not intend to increase their investment in China or increase less this year, up from 26 percent last year, according to a survey released on Monday. . Companies that have moved their capabilities out of China or are planning to do so have indicated that their main concern is US tariffs on products exported from China, as well as rising costs and slowing economic growth.
"If you have to invest now, then you can decide to invest in a third country," said Timothy P. Stratford, president of Amcham China and a lawyer at Covington & Burlington LLP in Beijing. "And if you can delay, then you will try to delay."
The annual survey was carried out between 13 November and 16 December, at a time of increasing tension in the US-China trade fight, in which both parties imposed punitive tariffs on trade between the United States and China. approximately 60% of their trade. The findings of the study are broadly in line with criticisms from US and other foreign firms over the past few years that the business situation in China is getting tougher, with regulations and government policies favoring domestic firms. .
A developed version of this report appears on WSJ.com.
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