Get ready for short-term trade pain, US tells American companies in China
Time is running out for both countries to avert the first tariff shots but two key dates could lead to a deal, sources say
US officials have warned American companies operating in China of pain ahead as the first round of tariffs looms in an expected trade war between the two countries, sources said.
Two US business sources said that the US embassy in Beijing told American companies on Thursday to be prepared for fallout over the short term, suggesting that the trade clash with China could last some time but would be in their interest over the long run. The embassy declined to comment.
American companies have been concerned about being caught up in the trade confrontation, worried that they could be subject to reprisals such as delays in Chinese licence approvals, prolonged takeover reviews and exclusion from procurement contracts.
Some US companies have already reported cases of the Chinese authorities rejecting visa applications for US executives, according to two other members of the American business community.
Senior Chinese officials have sought to allay those fears. On Tuesday, Liao Min, deputy director of the Office of the Central Commission for Financial and Economic Affairs and a member of China’s negotiation team in the trade row, met US business representatives in Beijing.