US Companies in China Voice Concern Over US-China Trade Tensions, AmCham Survey Shows

SHANGHAI, investortrust.id – More than half of American businesses operating in China have expressed concerns about a potential deterioration in bilateral relations between the world’s two largest economies. This marks the highest level of concern in five years, according to a survey released on Thursday, Jan. 23, 2025.

The annual survey by the American Chamber of Commerce (AmCham) in China revealed that 51% of respondents were apprehensive about worsening US-China ties in the future.

Illustration of the US-China trade war. Photo: SC Johnson College of Business

The report was published just days after US President Donald Trump began his second term in office with threats to impose higher trade tariffs on Chinese imports.

“A stable and constructive relationship grounded in economic and trade cooperation is vital not only to the prosperity of our two nations but also to global economic stability,” said Alvin Liu, Chairman of AmCham China, as quoted by Reuters.

Chairman of AmCham China, Alvin Liu. Photo: AmCham China

Geopolitical tensions, policy uncertainties, and trade disputes emerged as the top concerns for American businesses in China, according to the survey.

The survey polled 368 AmCham China member companies between October and November last year, partly after Trump’s re-election on Nov. 5. His previous term was marked by a US-China trade war and a deterioration in diplomatic relations, which saw little improvement under President Joe Biden’s administration.

On Tuesday, Trump announced that his administration was considering a punitive 10% tariff on imports from China, set to take effect on Feb. 1. The move is tied to allegations of China’s role in the global fentanyl supply chain.

Despite these tensions, nearly half of respondents still rank China as one of their top three global investment priorities, a figure consistent with last year’s results. However, the share of companies no longer considering China as a preferred investment destination has more than doubled to 21% compared to pre-pandemic levels, reflecting a three-percentage-point increase from last year’s survey.

Roughly one-third of businesses reported experiencing unequal treatment in China compared to local firms, a figure unchanged from last year. This disparity primarily pertains to market access and public procurement opportunities.