Record share of U.S. businesses divert China investments: AmCham Shanghai

Beijing – Almost half of the US businesses directed planned Chinese investments to other regions last year – the highest registration – the American Chamber of Commerce in Shanghai said in a statement on Wednesday.

The members of the Business Chamber came shortly after a rise in the US-China trade tensions and the temporary recovery of some tariffs from the middle of May. Last month, the two countries agreed to extend the trade ceasefire until mid -November 90 days.

“90 days for a company, this is very short,” he said to the journalists, President of Amcham Shanghai.

“At least we don’t need to deal with higher tariffs [for now]But the point is still here, Still here, Z Zheng said.

47% of the participants in the survey, said that they directly directed the planned investments for China between 19 May and 20 June to Southeast Asia. This first includes the question about the question about the investments from China in 2017.

The Indian sub -continent, which includes Bangladesh, was the second most popular target for re -directed investments, and the US and Mexico are much lower.

US President Donald Trump tried to encourage enterprises to bring production back to America and Trump criticized AppleIt plans to expand production in India. A few companies made high profile announcements to invest in advanced technology, especially in advanced technology.

Amcham Shanghai’s Includes members Apple, Ford– Honeywell– Meta And Tesla. Jeffrey Lehman, the chair of the business group, pointed out that members not only affect the US tariffs on the United States, but also Beijing’s retaliation tasks, because the materials needed to build the product usually come from the USA

Tariffs on the US on Chinese goods about 58%According to the US -based Peterson International Institute of Economics, Chinese are around 33%. Tariff rates may vary depending on the product.

Amcham Shanghai Research, the competition in China’s domestic market is also increasing.

Only 28% of the respondents said that China’s business margins were higher than the global work, and 33% of them are actually worse than Chinese performances.

US companies also said that six of the eight categories of Chinese competitors were more advanced, especially the marketing speed and the adoption of artificial intelligence. The questionnaire said that 41% of the participants were more advanced in the adoption of Chinese companies and that the stock rose to 62% in the retail and consumer industry.

Amcham Shanghai members only saw overwhelming advantages according to China’s competition in product quality and development.

While the trade tensions and concerns about China’s economic slowdown consisted of a close -term view, the respondents have shown that there is a significant improvement in the local regulatory environment.

He said that about half or 48%, the regulatory environment is transparent for industries, a leap larger than only 35%in 2024. Lack of transparency prevented the operations of the businesses, the share of the enterprises fell by 12 percent.

The share of the participants showing that they were treated equally to foreign and local companies increased to 37%.

In recent years, Beijing has increased its efforts to draw and achieve foreign investment with increasing participation and more friendly policy announcements. Earlier this year, China While publishing a “action plan” that includes measures to facilitate foreign enterprises to invest in biotechnology, it clarified the standards for state supply.