The already strained relationship between the United States and China escalated in 2020 amid the coronavirus pandemic and a new wave of unrest in Hong Kong. American business is not happy about the confrontation provoked by Washington and does not count on its quick completion.
According to a study by the American Chamber of Commerce in Shanghai and consulting company PWC China, one in two companies surveyed believes the tensions will drag on for at least 3 years. This figure is up 20% compared to last year’s survey. At the same time, 27% of companies believe that the new Cold War could last forever. Last year, there were only 13% of supporters of such a bleak prospect.
Against the backdrop of the unfolding presidential race in the United States, tensions in US-China relations are escalating thanks to Donald Trump’s provocative statements. This week, the head of the White House once again raised the issue of dividing the US and Chinese economies. The President believes that the country will not lose money, but business has a different position. Fearing the worst, American companies are beginning to scale back their investments in China. If last year 47% of companies actively invested in Chinese projects, now only 29% are ready to take risks.
The poll was conducted from June 16 to July 16 among 346 companies operating in the industrial, automotive and pharmaceutical industries.
