US-China trade war has hit ‘about half’ of businesses in southern China, AmCham survey says

American Chamber of Commerce in South China report contacted 240 firms, with 54 per cent of American companies losing out to competitors from overseas

Firms looking to relocate supply chains cite higher costs and trade barriers in China

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Of those companies surveyed by the American Chamber of Commerce in South China, 19 per cent said the impact from US tariffs on their business was strongly negative, while 31 per cent said the impact was slightly negative. Photo: Shutterstock

Published: 11:31am, 26 Feb 2019Updated: 12:02pm, 26 Feb 2019

Trade war tariffs imposed by China and the United States have had a negative impact on “about half” of the businesses in southern China, according to a new report.

Chinese, American and other foreign firms have all been affected, according to the special report on the state of business released on Monday by the American Chamber of Commerce in South China which surveyed 240 firms.

American companies operating in southern China continue to report being hurt the most as a result of the US and Chinese tariffs, with 54 per cent claiming to have lost market share to competitors from other countries, compared to 33 per cent of Chinese corporate respondents and 20 per cent of companies from other countries.

Of those companies surveyed, 19 per cent said the impact from US tariffs on their business was strongly negative, while 31 per cent said the impact was slightly negative.

A total of 13 per cent of respondents said the impact from Chinese tariffs was strongly negative, while 28 per cent said that the impact was slightly negative.

The survey of the 240 firms, of which 38 per cent were Chinese companies, 36 per cent were wholly foreign-owned companies and 13 per cent were joint ventures, was conducted soon after the US and China announced a 90-day tariff truce on December 1 as President Xi Jinping and US counterpart Donald Trump met in Argentina.

On Sunday, Trump delayed the application of the additional tariffs on Chinese imports, citing “substantial progress” in talks in Washington with a team led by Vice-Premier Liu He.

“Our company was among the surveyed firms that put a hold on investment in the mainland market last year,” said Tim Wen, president of the American Wine Import Association.