Risks and Opportunities: Why American Companies Remain Interested in the Chinese Market

The commercial ties between the two countries still possess resilience, demonstrating a complex interdependence that is difficult to sever. According to reports from The Wall Street Journal, against this backdrop, a new report has caught attention, revealing the true sentiments of American companies collaborating with China and their cautious approach strategies.

A new report commissioned by the American Chamber of Commerce Foundation found that despite the tense relationship between the two countries, some companies are seeking to diversify their operations and reduce dependence on China. However, many American businesses still plan to maintain or even strengthen their ties with China.

About 70% of approximately 40 American Chamber of Commerce members surveyed expressed plans to maintain or enhance their engagement with China. Additionally, over 60% of the 126 members of the Association of Corporate Counsel (an organization of corporate legal professionals) shared similar intentions. Meanwhile, among the 56 respondents from the Chamber, 83% listed China as their most concerning geographic region; among the 165 surveyed lawyers, 70% also provided the same response.

This report emphasizes that maintaining balance is extremely challenging, with companies worldwide striving to sustain this equilibrium, especially when the trade relationship between the U.S. and China seems to be heading toward breakdown. For decades, executives, board members, and institutional investors from the U.S. and its allies have viewed China as a market they cannot afford to lose. However, many of them now feel increasingly vulnerable.

Last week, DuPont became the focus of a series of measures announced by China in response to President Trump's新一轮 tariffs. China initiated an antitrust investigation into DuPont China Group Co., Ltd., without providing details. Last year, mainland China and Hong Kong accounted for 19% of the company's revenue.

The growing risks, combined with other factors, have prompted some companies to move production out of China. However, the report states that this trend is difficult to quantify. Companies are reluctant to disclose these measures. Overall, since 2021, American foreign direct investment in China has slowed down, even reaching a plateau.

At the same time, retaliatory measures from China have further complicated the situation for American companies. In particular, Washington has passed legislation restricting American companies from selling products to China and expanding certain types of production in China, primarily in the semiconductor sector. However, despite the increased risks, the report shows that the size of the Chinese market, the well-established cooperation system between suppliers and manufacturers, and the skilled labor force have led most surveyed companies to remain committed to maintaining their business presence in China.

Original Source: https://www.toutiao.com/article/1829005680637956/

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