Specifically, tariffs in the US-China trade war are "attacking" US businesses in China. Meanwhile, technology giant China Tencent is worried, the trade dispute will turn into a technology war between the two countries.
Trade disputes between the world’s two largest economies seem to have reached an agreement - until those hopes were broken earlier this month.
The United States announced it would raise taxes on China’s $ 200 billion goods from 10% to 25% on May 10. Beijing responded a few days later with a tax of 5% to 25% on goods worth US $ 60 billion and is expected to take effect from June 1.
Trade relations between the two largest economies are getting worse by the escalation of this trade war. Recently, AmCham China conducted a survey of nearly 250 US businesses in China on the latest US tax increase issue.
According to the survey, nearly three quarters (74.9%) found that this is having a negative impact on their businesses. “American businesses in China say that the negative things from the tariffs of trade war are obvious. It hurts the competitiveness of American companies in China. The Chinese government also seems to make its business more difficult, ”said AmCham representative.
About one-fifth of those surveyed said they had to undergo increased checks and slower customs procedures as the US-China trade tensions continued to escalate. Among the survey participants, 61.6% were involved in production, 25.5% in the service sector, 3.8% were in retail and distribution and 9.6% came from other industry.
According to the AmCham general survey, the biggest impact of tariffs is to increase production costs and reduce consumer demand for certain products.
In addition, tariffs also impact on indicators of global business, investment, and consumer confidence, creating major changes in the world market and international supply chains.
When asked about the solution, about 35% of respondents are restructuring their activities in China to reach the local market by increasing domestic supply or production. About 30% said they were delaying or canceling investment decisions in China. Only 10% of businesses will plan to apply for exclusion of Chinese tariffs and 15.1% said they will apply for tax exemption from US tariffs. Others said they had delayed investing in China and other "successors" because of trade stress.
Also in the "storm" of US trade war - China, technology giant China Tencent "stood still".
According to head of technology group Tencent Pony Ma, President Trump turned the US trade deficit with China into the center of the dispute. But the disagreement also lies in US complaints about the mandatory transfer of technology and protection of intellectual property.
Last week, the US Department of Commerce added Huawei and its affiliates to the blacklist. This will make it harder for US companies to do business with China’s "telecommunications giant." And vice versa, Huawei is also hindered in buying equipment in the US.
“Before the Huawei incident with the US in an uncertain state, we were always concerned about the trade war that would develop into a science and technology war. If this comes true, this war will have little impact - much on us, "said Pony Ma.
