Tariff increase having negative impact on American companies in China: survey

0 Comment(s)Print E-mail Xinhua, May 24, 2019
Adjust font size:
This undated photo shows a car being painted by robots at a factory of BMW in Shenyang, capital of northeast China's Liaoning Province. [Photo/Xinhua]

The U.S.-China tariff disputes are having a negative impact on businesses of American companies in China, according to a survey jointly conducted by AmCham China and AmCham Shanghai.

The United States increased additional tariffs on 200 billion U.S. dollars' worth of Chinese goods from 10 percent to 25 percent earlier this month, and has threatened to raise tariffs on some 300 billion dollars' worth of Chinese imports yet to be hit.

The survey, conducted from May 16-20, received nearly 250 responses on the assessment of the impact of tariff increases on companies operating in China.

A total of 74.9 percent of respondents said the increases are having a negative impact on their businesses.

The impact of the tariffs is felt through lower demand for products, higher manufacturing costs, and higher sales prices for products, according to the survey.

To cope with the impact of the tariffs, some 35.3 percent of the surveyed companies are increasingly adopting an "In China, for China" strategy.

"In China, for China" is a strategy to localize manufacturing and sourcing within China to mainly serve the China market. Such strategy constitutes a rational choice for many companies to insulate themselves from the effects of tariffs while maintaining their ability to pursue domestic market opportunities, the survey explains.

About 61.6 percent of the surveyed companies are manufacturing-related, 25.5 percent services, 3.8 percent retail and distribution, and 9.6 percent from other industries.

Follow China.org.cn on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter