A 13% of US companies with a presence in China plan to leave the Asiatic region, after the resurgence of the trade war between the two largest economies in the world which led the president of the United States, Donald Trump, to order US companies to look for alternatives to the Asian giant and move their factories back to the US.
According to a report by the American Chinese Business Council, which includes more than 200 companies, including multinationals such as Apple, Amazon, The Walt Disney Company or Walmart, only 3% of US companies operating in China will return to the US, while 10% will totally or partially abandon the country to move to another country.
This percentage is slightly higher than in 2018, when 10% of US companies in China decided to move to another location. Specifically, 4% decided to return to the US and 6% sought another country as the destination of their operations.
On the other hand, 17% of US companies in China expressed their intention to reduce their investments in the country, compared to 8% who responded in the 2018 survey.
“60% of respondents cited as a cause the increase in costs and uncertainties of trade relations between China and the US,” the study authors explained. While 47% indicated as the main reason to curb their investments in the country the political climate for American companies in China.
K. Tovar
Source: RPP
