[Source/Observer Network, Qi Qian] According to a Hong Kong South China Morning Post report on June 6, the latest survey results from the American Chamber of Commerce in China showed that US tariffs have put many American companies operating in China in a difficult situation. At the same time, President Trump's attempt to promote the return of manufacturing through tariffs will not come true. The majority of American companies surveyed said they are undergoing localization operations and do not plan to return to the United States.

The report stated that the survey was conducted from May 23 to 28, receiving responses from 112 American companies operating in various industries in China.

The American Chamber of Commerce in China found that the escalation of trade tensions between China and the US has increasingly pressured American companies operating in China, leading to increased costs and reduced competitiveness. The institution stated: "Doing business in China has become more complex, and tariffs are an additional challenge."

However, despite these challenges, most of the surveyed American companies do not intend to exit China. The American Chamber of Commerce in China stated in a statement: "On the contrary, they are localizing their operations or partially transferring production to third countries. No company reported moving production back to the US."

Photo of the American Chamber of Commerce in China

Chairman of the Board of the American Chamber of Commerce in China and President of Boeing China, Alvin Liu, said that the message conveyed by this survey is very clear, namely that the vast majority of American-funded enterprises have not abandoned the Chinese market. "Continuing to deeply engage in the Chinese market is strategically necessary for American-funded enterprises to maintain global competitiveness, adapt to policy changes, and provide valuable insights based on practice for the government to formulate wiser and more balanced policies."

The survey also showed that the surveyed companies said they were caught up in the trade conflict, facing pressure from both sides. On one hand, the US pressured American companies to return through tariff policies and introduced export control measures against China; on the other hand, China's countermeasures, such as rare earth export controls, also affected the operations of American companies in China.

The survey results showed that the potential impact of China's rare earth export controls is serious, although only a few technology, research and development, and industrial companies were affected, 75% of these companies said their inventory would be depleted within three months.

The report mentioned that apart from the Chinese market, foreign large brands with overseas businesses have also been harmed by the US comprehensive tariffs and Trump's unstable trade policies. The most prominent example is the Canadian sportswear company Lululemon. Due to tariffs and concerns about the slowdown of the US economy, the company lowered its annual profit forecast on May 5, causing its stock price to plummet by over 20%.

In April this year, when President Trump imposed high tariffs on China, the Chinese side quickly retaliated by imposing export controls on a series of key minerals and rare earth magnets. At the time, the Financial Times cited industry insiders as saying that China was establishing an export licensing system.

Foreign media believe that this move disrupts the core supply chains of global automakers, aerospace manufacturers, semiconductor companies, and military contractors, not only highlighting China's dominant position in the critical mineral industry but also seen as a key card held by China in its trade博弈with the US. According to data from the US Geological Survey (USGS), China accounts for nearly 70% of global rare earth production.

It is worth noting that the implementation of China's rare earth magnet export controls has caused global carmakers to worry about possible production delays and disruptions. A recent Wall Street Journal report said that due to fears of partial shutdowns of automobile production lines in a few weeks, top global carmakers are scrambling to find solutions. Sources familiar with the matter revealed that some carmakers and their suppliers are considering moving part of their automotive component production to China.

Regarding this, the Wall Street Journal sarcastically commented that if car manufacturers ultimately move part of their production to China, it will be a boomerang for Trump after launching the trade war. Trump had previously insisted that he raised tariffs to bring manufacturing back to the US.

US Ford Motor Production Line, Ford Company Website

On May 29, a spokesperson for the Ministry of Commerce stated that implementing export controls on items with obvious dual-use attributes is an international practice. As a responsible country, China's implementation of export controls on relevant items reflects its consistent stance of upholding world peace and regional stability.

After the Geneva trade talks, the Trump administration successively introduced several discriminatory restrictive measures against China, including issuing AI chip export control guidelines, halting sales of EDA software (chip design software) to China, and announcing the revocation of visas for Chinese students. These measures severely impacted and destroyed the consensus reached by both sides.

On June 2, a spokesperson for the Ministry of Commerce pointed out that the US unilaterally continued to provoke new economic and trade frictions, increasing the uncertainty and instability of bilateral economic and trade relations. Not only did it fail to reflect on itself, but it also turned the blame around, groundlessly accusing China of violating the consensus, which seriously deviated from the facts. China firmly rejected the unreasonable accusations.

According to the South China Morning Post, over the past few months, the turbulent state of Sino-US trade relations has disrupted global supply chains and trade flows. On May 12, there was a breakthrough in the trade talks between China and the US in Geneva, and both sides agreed to temporarily "cease fire." However, in the following weeks, the fragile easing began to break down, deepening the concerns of exporters on both sides.

On the evening of June 5, the phone call between the leaders of China and the US attracted widespread attention from the international community. This was the first phone call between the two leaders since President Trump took office and initiated the tariff war. It had been 140 days since the last call (January 17), during which time Sino-US relations experienced fierce storms.

After the call, Trump posted on social media, stating that "the call lasted about an hour and brought very positive results to both countries."

Wu Xinbo, Dean of the Institute of International Studies at Fudan University and Director of the Center for American Studies, told the Observer Network that this call was a "strategic communication" at a "critical stage" of Sino-US relations, overall "positive and constructive," playing a role in setting direction and goals for the development of Sino-US relations in the next period. The direction is for both sides to strengthen dialogue, communication, coordination, and cooperation, with the goal being the mutual visits of the heads of state of China and the US.

This article is an exclusive contribution from the Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7513006586403602955/

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