Page 9 - 2020 White Paper on the Business Environment in China
P. 9
The American Chamber of Commerce in South China
just grown since 2000. The country’s manufacturers within 24 hours from the time of being relayed by us
have also become entangled in supply chains of to relevant government officials.
mind-boggling complexity. A factory in Wuhan may
provide parts to a firm in Guangzhou, which in turn Economic growth in much of the world slowed in
supplies a factory somewhere else in the world, with the last quarter of 2019 as consumers became more
the final product emerging in Michigan. Just-in-time cautious about spending, leaving the economies
production leaves little room for delays. Many firms vulnerable as they begin to feel the effects of the
cannot trace all their suppliers, making it hard to outbreak in China. It remains clear that business as
predict the impact of work stoppages in China on usual has not fully resumed. One thing that can help
their output, let alone on global GDP. would be a Phase II deal between the US and China.
This would supply a needed boost to international
For too long the world has operated on a cycle of economies as they restock necessary inventory.
panic and neglect. We echo the UN health agency’s
director-general Tedros Adhanom Ghebreyesus: For the sake of international trade, the US and
“We throw money at an outbreak, and when it’s China must return to the negotiating table. Both
over we forget about it and do nothing to prevent countries have a big incentive to agree to the
the next one.” The Novel Coronavirus is drawing additional issues that are still unresolved. The
much-needed attention to the possibility of a global world's two biggest economies have been locked
health crisis. Awareness, however, is not enough. in a bruising trade conflict. Hitting each other
The status quo has made us all vulnerable. Lives with rhetorical volleys and tariffs on hundreds of
will continue to be at risk to similar occurrences billions of dollars’ worth of goods is not helping the
without more action from policymakers from process. I believe the key to minimizing conflict is
across the planet. if we can develop shared standards for emerging
technologies. Our nations must cooperate to
The human toll of the virus is not the only preserve a prosperous international order. US-China
major problem at hand. It is becoming increasingly ties would be a stabilizer for bilateral relations. Both
clear that restarting China, the world’s largest sides should strengthen strategic communication
manufacturer and a giant of global trade, will be to avoid misunderstandings and misjudgment.
difficult even as the country makes major strides to Together we can right the wrongs of the past and
contain the outbreak. I’m proud to say our staff and deliver a future of economic justice and security.
members are doing their part. We contacted all of
our members by telephone and released a Special While the bilateral relationship between the US
Report on the Impact of COVID-19 Coronavirus Outbreak and China has gone through many ups and downs
in late February. According to our recent polling of since 2018, many AmCham South China members
members as of March 6, 95% of our companies and have withstood the impact to various degrees.
93% of factories were operational. About 80-85% of Our Special Report this year found relatively stable
workers have returned to work. Many companies revenue, profitability, and return on investments in
are working overtime, and companies with offices in China. While more US companies witnessed decline
office buildings are implementing staggered shifts in revenues from China than their counterparts,
to manage people flow. We are currently calling their profitability remained better than the others.
members to determine the impact of the outbreak In spite of all the problems and controversies,
on the supply chain. As of the end of February, 100% China remains one of the top three investment
of difficulties reported by our members were solved destination in the world by more than a half of
9
just grown since 2000. The country’s manufacturers within 24 hours from the time of being relayed by us
have also become entangled in supply chains of to relevant government officials.
mind-boggling complexity. A factory in Wuhan may
provide parts to a firm in Guangzhou, which in turn Economic growth in much of the world slowed in
supplies a factory somewhere else in the world, with the last quarter of 2019 as consumers became more
the final product emerging in Michigan. Just-in-time cautious about spending, leaving the economies
production leaves little room for delays. Many firms vulnerable as they begin to feel the effects of the
cannot trace all their suppliers, making it hard to outbreak in China. It remains clear that business as
predict the impact of work stoppages in China on usual has not fully resumed. One thing that can help
their output, let alone on global GDP. would be a Phase II deal between the US and China.
This would supply a needed boost to international
For too long the world has operated on a cycle of economies as they restock necessary inventory.
panic and neglect. We echo the UN health agency’s
director-general Tedros Adhanom Ghebreyesus: For the sake of international trade, the US and
“We throw money at an outbreak, and when it’s China must return to the negotiating table. Both
over we forget about it and do nothing to prevent countries have a big incentive to agree to the
the next one.” The Novel Coronavirus is drawing additional issues that are still unresolved. The
much-needed attention to the possibility of a global world's two biggest economies have been locked
health crisis. Awareness, however, is not enough. in a bruising trade conflict. Hitting each other
The status quo has made us all vulnerable. Lives with rhetorical volleys and tariffs on hundreds of
will continue to be at risk to similar occurrences billions of dollars’ worth of goods is not helping the
without more action from policymakers from process. I believe the key to minimizing conflict is
across the planet. if we can develop shared standards for emerging
technologies. Our nations must cooperate to
The human toll of the virus is not the only preserve a prosperous international order. US-China
major problem at hand. It is becoming increasingly ties would be a stabilizer for bilateral relations. Both
clear that restarting China, the world’s largest sides should strengthen strategic communication
manufacturer and a giant of global trade, will be to avoid misunderstandings and misjudgment.
difficult even as the country makes major strides to Together we can right the wrongs of the past and
contain the outbreak. I’m proud to say our staff and deliver a future of economic justice and security.
members are doing their part. We contacted all of
our members by telephone and released a Special While the bilateral relationship between the US
Report on the Impact of COVID-19 Coronavirus Outbreak and China has gone through many ups and downs
in late February. According to our recent polling of since 2018, many AmCham South China members
members as of March 6, 95% of our companies and have withstood the impact to various degrees.
93% of factories were operational. About 80-85% of Our Special Report this year found relatively stable
workers have returned to work. Many companies revenue, profitability, and return on investments in
are working overtime, and companies with offices in China. While more US companies witnessed decline
office buildings are implementing staggered shifts in revenues from China than their counterparts,
to manage people flow. We are currently calling their profitability remained better than the others.
members to determine the impact of the outbreak In spite of all the problems and controversies,
on the supply chain. As of the end of February, 100% China remains one of the top three investment
of difficulties reported by our members were solved destination in the world by more than a half of
9
