A recent report by the American Chamber of Commerce in Shanghai highlights how growing US-China trade tensions and China’s slowing economy are pushing many companies to look for alternative markets like India and Southeast Asia. The 2024 China Business Survey, released on September 12, shows that 40% of companies are redirecting investments originally planned for China.
More than two-thirds of US companies in China are de-risking, with 25% separating data between China and non-China operations. 20%, however, plans to decrease investment in China this year due to the country’s slowing growth coupled with a general lack of confidence in the government’s ability to stimulate demand.
Leaders of AmCham called for US and Chinese governments to engage in talks to steady the ties. The number of potential investments is frozen, pending further reforms by the market.
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Source: Moneycontrol
News Desk
