Page 22 - Media Coverage Report
P. 22
begin friendly and mutually respectful With the pandemic causing the deepest global
dialogue. ”under the Department of Defence to recession in decades, reinvestment in China
review US strategy towards the country and he last year also took a hit, according to the survey.
has said Washington would not immediately
remove tariffs on Chinese goods. The number of very large planned
reinvestments worth US$250 million or more
More than half of the companies that took dropped to the lowest level in several years,
part in the survey claimed US tariffs have had representing a 82 per cent drop year on year
a negative impact on their business – with US for all foreign companies and 65 per cent cut
companies hurting the most – although that for US companies.
represented an improvement on the previous
two years. The survey suggested that the reduction in
large investment plans is connected to the
China is still the top spot for investment for 55 lower number of foreign executives in China
per cent of businesses, up 10 per cent on 2019, this year. “We predict that this will severely
but its appeal varies between industries. impact China’s manufacturing output two to
three years from now,” the survey said.
More than 60 per cent consumption products
and services companies chose China as their While most companies said they would expand
number one investment priority, as did 59 per in China, the share of companies that planned
cent professional services companies. to increase their presence in the next three years
dropped to new low compared to the past five
However, only 40 per cent of manufacturing years because of the pandemic, the survey found.
firms chose China as the top destination, a
pattern that was similar to last year’s result and
showed the world’s second biggest economy
was losing its attraction as a manufacturing base.
The trade war is not the only issue weighing on
businesses in South China. Three quarters of
respondents said their operations have been
impacted by visa and travel restrictions caused
by the Covid-19 pandemic, both in China and
the US.
The effect of travel restrictions in China
included the cancellation of international
business travel, events and meetings, as well as
the absence of management due to executives
being unable to return.
22 AMCHAM SOUTH CHINA
dialogue. ”under the Department of Defence to recession in decades, reinvestment in China
review US strategy towards the country and he last year also took a hit, according to the survey.
has said Washington would not immediately
remove tariffs on Chinese goods. The number of very large planned
reinvestments worth US$250 million or more
More than half of the companies that took dropped to the lowest level in several years,
part in the survey claimed US tariffs have had representing a 82 per cent drop year on year
a negative impact on their business – with US for all foreign companies and 65 per cent cut
companies hurting the most – although that for US companies.
represented an improvement on the previous
two years. The survey suggested that the reduction in
large investment plans is connected to the
China is still the top spot for investment for 55 lower number of foreign executives in China
per cent of businesses, up 10 per cent on 2019, this year. “We predict that this will severely
but its appeal varies between industries. impact China’s manufacturing output two to
three years from now,” the survey said.
More than 60 per cent consumption products
and services companies chose China as their While most companies said they would expand
number one investment priority, as did 59 per in China, the share of companies that planned
cent professional services companies. to increase their presence in the next three years
dropped to new low compared to the past five
However, only 40 per cent of manufacturing years because of the pandemic, the survey found.
firms chose China as the top destination, a
pattern that was similar to last year’s result and
showed the world’s second biggest economy
was losing its attraction as a manufacturing base.
The trade war is not the only issue weighing on
businesses in South China. Three quarters of
respondents said their operations have been
impacted by visa and travel restrictions caused
by the Covid-19 pandemic, both in China and
the US.
The effect of travel restrictions in China
included the cancellation of international
business travel, events and meetings, as well as
the absence of management due to executives
being unable to return.
22 AMCHAM SOUTH CHINA
