US companies move away from China

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In this month’s survey, 87 percent of respondents said they were pessimistic about the future of the relationship between the two largest economies. In the business environment survey presented in March, it was 73 percent.

Slightly less than a quarter (23 percent) are considering or are already considering relocating their supply chains to other countries. 27 percent reported that their companies were re-prioritizing other countries – an increase of 22 percentage points. About two-thirds cited bilateral tensions and other geopolitical risk factors as top issues for foreign workers when considering a possible job in China.

“Lack of confidence in bilateral relations has raised concerns about American investments and the overall risk burden,” the U.S. Chamber of Commerce said in an annual parallel white paper. Said. “The government’s emphasis on self-reliance creates additional uncertainties for foreign companies.”

Relations between the two countries are worse than they have been since 1979, when diplomatic relations began. China’s support for Russia’s war in Ukraine, its claims in the South China Sea, US high-tech export controls and the ongoing trade war with mutual punitive tariffs are the main causes of disagreement. China accuses the United States of hindering its rise and fomenting a new Cold War.

As the Chamber of Commerce also reported, the zero-Covid strategy, which has been followed for nearly three years in China, is still felt in many industries, even though protection measures against corona infection and travel restrictions have now been lifted. However, after lockdowns, mandatory lockdowns and other restrictions ended in December, 59 percent of US companies are optimistic about the recovery in China. Share increased by 22 points. Respondents are not very optimistic about their profitability potential: the number rose by only 4 percentage points to 37 percent. (SDA)

Source :Blick