German media: U.S. companies' new investments in China hit a new low, but still can't part with reliance on China
The U.S.-China Business Council released a report this week, showing that new investment plans by American companies in China have reached an all-time low this year, and confidence in profits has also declined. American companies said that the uncertainty in U.S.-China relations and the tariffs imposed by President Trump are their biggest concerns at present, but most American companies still consider the Chinese market crucial.
The U.S.-China Business Council released a report on Wednesday (July 16), showing that new investment plans by American companies in China have reached an all-time low this year. The report was conducted after the tariff and non-tariff conflicts between the U.S. and China from March to May this year, and it surveyed 130 American companies that have invested in China.
After high-level talks between the U.S. and Chinese governments in Geneva and London, the two sides reached a trade agreement framework, agreeing to cancel high tariffs and some export restrictions. However, due to the lack of a more enduring trade agreement, uncertainties remain.
Although 82% of American companies made profits in 2024, fewer than half of them expressed optimism about investing in China in the future, reflecting concerns about tariffs, deflation, and policy uncertainties. Sullivan, head of the business advisory department of the U.S.-China Business Council, pointed out that more than half of the surveyed companies had no new investment plans in China this year, which is a new development not observed in previous surveys.
In addition, 27% of the surveyed companies have plans to move their businesses out of China, which is higher than the 19% last year and also a record high.
However, almost all of the surveyed American companies stated that if they lost their businesses in China, the company would be unable to maintain competitiveness in the global market.
Is Trump softening his stance towards China?
Bloomberg cited sources saying that Trump has gradually softened his previously tough stance toward China. On Tuesday, Trump also said he would compete with China in a "very friendly way."
The report said that Trump is now more inclined to reach a trade agreement with Beijing and pursue quick, publicity-friendly victories rather than fundamentally addressing structural issues of trade imbalances.
A source familiar with the matter revealed that the Trump administration is preparing to extend the originally scheduled 8月12日 expiration of the U.S.-China tariff ceasefire for another three months. Previously, U.S. Treasury Secretary Bennett said that this deadline is flexible.
Source: DW
Original: https://www.toutiao.com/article/1837876832711691/
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