After Chengdu, ‘nobody knows what is next’, say US firms in geopolitical crosshairs
- After the closure of the US consulate in Chengdu, American companies in the region began worrying about what comes next
- No exodus of US firms from China, but ‘new cold war footing’ and dissolution of constructive ties has left businesses on tenterhooks
As chairman of the American Chamber of Commerce in Southwest China, Wang was a natural point man to field anxious questions from some of the 54 Fortune 500 companies based in the region, many of whom were concerned that geopolitical issues were spiralling out of control.
“The first issue is that tensions are escalating. Then there is uncertainty about future policies, you never know where this will go. Nobody knows what is next,” said Wang, whose organisation represents the interests of blue chip American companies such as Intel, Ford and Citibank in the area that includes the Chinese megacities of Chengdu and Chongqing, both industrial hubs.
It is clear from conversations with our members that at a high level, bilateral tensions are the top priority for companies.
Most of these firms are resolved to stay in China, surveys show, determined to profit from the 1.4 billion person domestic market, while meetings with local officials have suggested that they are aware of the agitation, offering “financial and policy support” to firms in the southwest China region.