US firms in China feeling "clear and far reaching" trade war pinch - Survey
|According to a joint survey of hundreds of firms, conducted by AmCham China and AmCham Shanghai and published on Thursday, the US firms in China are bearing the brunt of the tariffs amid escalating trade tensions between the US and China.
More than 430 companies responded to the survey between Aug. 29 and Sept. 5
Key Findings (via Reuters):
“More than 60 percent of U.S. companies polled said the U.S. tariffs were already affecting their business operations, while a similar percentage said tariffs by China on U.S. goods were having an effect on business.
Companies reported the tariffs were pressuring profits, reducing demand for their products and driving up production costs.
Roughly three-in-four firms surveyed said duties on an additional $200 billion worth of Chinese goods would hurt business further, and close to 70 percent said additional retaliatory Chinese tariffs would be bad for business.
More than 52 percent of respondents to the survey reported already suffering the consequences of such measures, mainly through increased inspections, slower customs clearance and “other complications from increased bureaucratic oversight or regulatory scrutiny”.
Nearly two-thirds of the companies that responded have not relocated nor were they considering moving manufacturing facilities away from China. Only 6 percent said they were considering relocation back to the United States, the survey said.
Meanwhile, nearly a third of companies said they were considering delaying or canceling investments, underscoring the heightened uncertainty created by the trade tensions.
About 30 percent said they were adjusting supply chains by seeking to source components and/or assembly outside the U.S., and about the same number were seeking to source components and/or assembly outside China.”
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