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By APD writer Alice
A recent survey by the American Chamber of Commerce (AmCham) in Shanghai showed that US companies are optimistic about their business prospects in China, saying they will see improvements in both the political climate and revenue.
Of the 124 company leaders interviewed on November 11-15, only two said they felt more pessimistic about the business prospects in China, after US media reported Joe Biden won the election and became President-elect of the country.
In its statement, AmCham said in general, companies have a positive outlook on the prospects under the Biden administration. This is probably due to expectations that US-China relations will become more stable than it has been in the past four years, although it is less likely to return to the pre-2016 situation.
The survey found that more than half of US business leaders in China (54.8%) said they are "more optimistic" and 8.1% said they are "much more optimistic" as the Trump administration will be replaced.
According to Ker Gibbs, President of AmCham Shanghai, the majority of people surveyed look at the change with optimistic eyes. Biden's administration will be a positive factor in terms of stable environment and relations.
Tensions between the US and China have increased under the Trump administration, which took a tough approach to handling differences. Actions by Trump, such as limiting visas for Chinese students and journalists and repeatedly blaming China for the spread of the coronavirus, have raised tensions between the two superpowers and contributed to an atmosphere of uncertainty and unpredictability for American companies in China.
As a result of the trade war, both the US and China have imposed high taxes on each other's goods worth billions of dollars. Next, the US blacklisted technology giant Huawei and several other large corporations of China, banning them from buying components from key US suppliers.
According to the AmCham Shanghai survey, only 5.6% of those questioned said that tariffs will be widened under the Biden administration. Businesses believe that China's economic recovery from the COVID-19 pandemic is also a good factor for businesses, while the US is still struggling to control the disease. Nearly half of the respondents (47.6%) expect their 2020 sales to be higher than last year.
Most companies with manufacturing operations in China plan to maintain production in this country for the next 3 years. Only three firms intend to move at least 30% of their manufacturing operations to another country, according to the survey.
However, not all US businesses in China are optimistic. One third of the respondents said they were concerned about the possibility that China would ban companies from leaving the country or have other restrictions on the employees of US firms.
(ASIA PACIFIC DAILY)
