American businesses in China no longer expect any relations between the two nations to improve, as a result of the Trump administration’s tensions.
A business association survey in the US estimated.
When President Joe Biden was elected in late 2020, there had been a rise in excitement among businesses. Where 45 percent of those who were surveyed expected better US-China relations.
According to the American Chamber of Commerce in China’s annual survey of members,
In the most recent study, done in autumn of 2021, that level of confidence has dropped to 27% of participants.
The same as when Donald Trump was president and imposed stricter policies on China. Since 2019, rising US-China tensions have been one of the top five concerns of doing business in China, as per the report.
"Perhaps there was a sense of hope and optimism."
In a call with reporters on Tuesday, Alan Beebe, president of AmCham China, said that once Biden took office, the relationship will improve.
“But I believe what we’ve seen over the last year is that there’s a new reality that’s set in”. Most of the Trump administration’s policies and beliefs are still in place with the Biden administration,” he said.
Trump-era taxes have remained in place since Biden took office in early 2021. Meanwhile, the US has added more Chinese companies to blacklists.
Thereby, banning them from buying from American suppliers.
Donald Trump used taxes and fines to put pressure on China. In order to, solve long-standing complaints about intellectual property theft, unfair market access. Along with, forced transfer of important technology.
Meanwhile, ignoring the fact that the Chinese central government has stated plans to address many of these concerns.
However, AmCham reports that local implementation of this is still unfair.
American businesses are facing challenges in doing business with China. As per the study, recent years’ administrative regulations and new data privacy rules have increased anxiety about future investments.
Last month, economists expected that the worst of the crackdown would be over.
Since Beijing switched its focus to growth. However, warning that the regulation would not be removed or reversed.
China’s economic recession is having an effect on corporate operations. Additionally, Covid-19 travel restrictions are preventing international talent from joining local companies.
The percentage of businesses expecting profits to rise year over year increased. Ranging from 54 percent in 2020 to 59 percent in 2021.
Companies haven’t been able to pass on growing production costs while remaining competitive locally, according to Beebe, which is one reason for the continued pressure on profitability.