SHANGHAI, Jan 23 — More than half of the American businesses in China, the highest level in five years, say they are concerned about a further deterioration in the bilateral relationship between the world's two largest economies, a survey published on Thursday shows.
The annual survey by the American Chamber of Commerce (AmCham) in China showed 51 per cent of respondents were concerned about a future deterioration in the United States (US)-China relationship.
It was released just days after US President Donald Trump took office for a second term with the threat of increasing trade tariffs on Chinese imports.
"A stable and constructive relationship, grounded in economic and trade ties, is critical not only for the prosperity of our two nations but also for global economic stability," said AmCham China Chair Alvin Liu.
Geopolitical tensions, policy uncertainties, and trade disputes were major concerns of US businesses in China.
The survey of 368 AmCham China member companies was completed between October and November last year, partly after Trump won the presidential election on November 5.
His previous term as president was marked by a US-China trade war and a general decline in diplomatic goodwill between the two countries that did not markedly improve during President Joe Biden's tenure.
On Tuesday, Trump said his administration was discussing a 10 per cent punitive duty on Chinese imports that could be imposed from February 1 onwards, about China's part in the global supply chain of fentanyl.
Almost half of the respondents still rank China as a top-three global investment priority, around the same level as last year. However, the proportion of companies that no longer list China as a preferred investment destination has more than doubled to 21 per cent compared with pre-pandemic levels and rose three percentage points from last year's survey.
Also around the same level as last year is the proportion of firms reporting unfair treatment in China compared with local firms — around a third of businesses — particularly concerning market access and public procurement.
— Reuters
