Trade Disputes - Most U.S. Companies in China See More Gains Despite Trade Disputes

A large proportion of U.S. companies holding investment in China said they have seen continuous revenue growth in China and urge both governments to create a more sustainable economic relationship, according to a survey released on February 26 by the American Chamber of Commerce in China.

Despite the existing trade disputes, the survey noted that China remains a high priority market for most of the respondents.

It was also indicated in the survey that China-U.S. trade tensions contributed largely to the overall outlook for U.S. companies surveyed shifting from cautious optimism to cautious pessimism.

The chamber’s members have known clearly about actions that should be taken by the Chinese and U.S. governments to build more sustainable economic ties between the two countries, said Tim Stratford, chairman of AmCham China, whose membership comprises more than 3,300 individuals from 900 companies running businesses in China.

As Chinese and U.S. negotiators made substantial progress in the latest round of trade talks in Washington last week, Lu Kang, spokesman of the Foreign Ministry of China, said both sides will continue to push for win-win outcomes.

Also Read: China Resumes Purchase of U.S. Soybeans

Kevin Li, a Deloitte partner, said that seeking a comprehensive and long-term resolution to the current trade conflict is critical to creating a more positive, predictable environment for companies, which in turn will benefit the people of both countries and the whole world.

In addition to a boatload of investment made by U.S. firms such as Exxon-Mobil Corp, Cargill Inc and Tesla Inc in China last year, investment in China from U.S. companies more than doubled in January, signaling an eased trade friction between the two countries possibly due to a deal reached.

Foreign direct investment (FDI) into China last month totaled $12.41 billion, up 2.8 percent year-on-year, while investment from the U.S. surged by 124.6 percent, according to data published by the Ministry of Commerce.

As China has taken a series of new measures, including enforcing new foreign investment laws to better protect the rights and interests of foreign-funded firms and allow foreign enterprises to have access to sectors that are restricted from introducing foreign investment, most U.S. companies responding to the survey still considered China an important market and expected positive profit growth in China this year.

Economic analysts believed if China and the U.S. can defuse their trade tensions through bilateral talks, China’s moves to unleash its domestic consumption potential will make itself still an attractive destination  for foreign investors.

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