Chinese flags and the United States flutter near the Bund, before the American commercial delegation met their Chinese counterparts to hold talks in Shanghai, China on July 30, 2019.
Ali Song Reuters
BEIJING – A record share of American companies in China hastened its plans to transfer manufacturing or sources, according to a commercial survey issued on Thursday.
About 30 % of the respondents looked or started in this diversification in 2024, bypassing the highest level of 24 % in 2022, according to the annual surveys of the American Chamber of Commerce in China.
This also exceeded a 23 % share of the amount for the year 2017, when the US President Donald Trump His first term began and began raising the definitions of Chinese goods.
In addition to American -Chinese tensions, “One of the main effects we have seen in the past five years was Covid and how China has closed itself from the world because of Covid”, Michael Hart, the Beijing -based AMCHAM China, he told reporters Thursday.
“This was one of the biggest operators as people realized that they needed to diversify their supply chains,” he said. “I don’t see this trend slowing down.”
China restricts international travel and closed parts of the country during the Covid-19 pandemic in an attempt to restrict the spread of the disease.
While India and Southeast Asian countries remained the most popular destination for transporting production, the poll showed that 18 % of the respondents looked at the move to the United States in 2024, an increase of 16 % in the previous year.
Most American companies have not planned to diversify. The survey showed that a little more than two -thirds, or 67 % of the respondents said they were not thinking about transferring manufacturing, a decrease in percentage from 2023.
The latest AMCHAM China poll covered 368 members from October 21 to November 15. Trump was re -elected the US President on November 5.
Trump confirmed this week Place to raise the definitions on Chinese goods by 10 %And he said that duties could come as soon as February 1. This follows an increasing American position on China. The Biden Administration confirmed that the United States is in competition with China and has issued comprehensive restrictions on Chinese companies’ ability to reach high -tech.
More than 60 % of the respondents said that US -Chinese tensions were the biggest challenge to do business in China next year. Competition was from local state -owned companies or Chinese -owned Chinese companies, the second largest challenge for American companies operating in China, according to the survey.
The slower economic growth
In addition to geopolitical pressures, growth slowed in the second largest economy in the world, with silent consumer spending since the epidemic. In late September, the Chinese authorities began increasing efforts to stimulate growth and stop the real estate recession.
During a third consecutive year, more than half of the Amchan China respondents said they did not make a profit in the country, adding that the region has become less competitive in terms of margins against other global markets.
The survey said that the percentage of companies is no longer the graduation of China as a favorite investment destination that increased to 21 %, doubling of prenatal levels.
However, the business of technology, industrial and consumers said that they looked at growth in local consumption as a better job opportunity for 2025. Service companies said their supreme opportunity is Chinese companies looking to expand abroad.
Hart noted that many members are still optimistic about Chinese consumers as a “large and important market”.
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