Escalating US-China trade war forcing foreign service firms at Beijing expo to walk tightrope

China’s population of 1.4 billion remains a compelling platform for entrepreneurs, but the escalating trade war tensions with the United States are creating additional pressures for foreign businesses operating within the world’s second largest economy, with some forced “to take sides”.

China continues to promote itself as an advocate for globalisation and free trade in goods and services, despite US accusations that its unfair trade practises have hurt foreign businesses, but the trade war is complicating decisions by those companies wanting to do business in both the US and China.

“[The trade war] is not good for anyone because you have to take sides,” said Garba Halidou, an entrepreneur from Tonga who runs a shea and cocoa butter business. “China is the biggest market [for me]. Now I have to think about, should I have my products come from [China] as I also want to sell to the US.”

Halidou made his comments at the China International Fair for Trade in Services in Beijing, a showcase for services firms from around the world looking to tap into China’s rising spending power and desire for high quality products and services.

But at the fair on Wednesday, there were a number of empty booths from China’s biggest trading partners including the US and the European Union, with much of the foreign presence dominated by embassies and consulates rather than individual companies.