US FIRMS IN CHINA NOT LEAVING DESPITE WASHINGTON-BEIJING TIFF

US companies in China are increasingly fretful that trade tensions between the world’s two biggest economies will drag out over years and nearly a third said their ability to retain staff had been affected, a survey showed, Brenda Goh reported for Reuters late on September 9, 2020.

Half of the firms said they believe soured ties will last at least three years, up sharply from 30% in 2019, according to an annual business sentiment survey conducted by the American Chamber Commerce in Shanghai and consultancy PWC China. Of those, 27% said they believe tensions will last indefinitely, compared with just 13% last year.

This year’s survey was conducted June 16-July 16 and garnered responses from 346 companies spanning sectors such as industrial manufacturing, automotive and pharmaceutical. More than 90% of respondents said they were committed to remaining in China, while 71% of firms that own or outsource production in China said they did not intend to shift manufacturing to other countries.

“US businesses in China would like to see the two countries resolve their outstanding issues quickly and reduce tensions. A workable cooperative framework for the next decade would be a good place to focus discussions,” Ker Gibbs, president of the business chamber, said in a statement.

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