USA companies in China are ‘suffering’ in trade war, survey says

Salam Bin Mohammed 24 was first in the queue for the new iPhone 8 at Apple’s Regent Street store in London last September. Analysts will be watching to see if demand is as strong for new models this year

US reached out to China for new trade talks, sources say

Beijing "has indeed received an invitation from the United States and holds a welcoming attitude to it", said Gao, noting the "two sides are still communicating on the specific details". "Now the two sides are in communication on relevant details".

A trade war is ultimately about who has more to lose.

Beijing has issued a list of $60 billion of American products for retaliation if Trump's next tariff hike goes ahead.

The trade war has already contributed to sell-offs in China's stock markets and currency.

William Zarit, the chairman of the American Chamber of Commerce in China, warned the Trump administration against assuming those difficulties will force Beijing to cave in to its demands.

Before his meeting on Thursday, Trump boasted on Twitter that he has the upper hand in the trade feud with Beijing and feels "no pressure" to resolve the dispute.

A U.S. Treasury spokesman did not respond to requests for comment.

Meanwhile, almost a third of companies said they were considering delaying or canceling investments, underscoring the heightened uncertainty created by the trade tensions. That prompted worries it would use regulatory controls to disrupt US business operations in China.

"We share the concerns of the USA regarding China's trade and investment practices, but continuing along the path of tariff escalation is extremely risky", warned Harborn.

Another business group, the U.S.

"This survey affirms our concerns: tariffs are already negatively impacting US companies and the imposition of a proposed $200 billion tranche will bring a lot more pain", said AmCham Shanghai chairman Eric Zheng.

The White House has sought to pressure Beijing to reduce its trade surplus with America and protect intellectual property rights of US companies, which it says are abused in China.

His first round of tariffs this summer hit US$50 billion in Chinese products like high-end technology parts and manufactured goods, while Beijing fired back dollar-for-dollar at USA soybeans, autos and other farm goods.

Zoom out from the automotive sector, and more than 60% of American companies in China said they have been affected by the tit-for-tat spat.

The survey was conducted between August 29 and September 5.

About 30% of firms said they were shifting parts of their supply chains away from China and the United States to buy components from other places.

China has tried without success to recruit Germany, France, South Korea and other governments as allies against Washington.

"Even if all of the tariffs threatened by Trump on autos and China are imposed, those would amount to, at most, 0.8 percent of GDP, which would cause barely a ripple in growth, inflation or employment numbers", said Mr. Scott, senior economist at the think tank.

On Wednesday, organizations representing companies in industries including retailing, toy manufacturing, farming and technology plan to announce they are cooperating on a lobbying campaign called Tariffs Hurt the Heartland to oppose tariffs on imports, according to Dow Jones Newswires.

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