American firms in China fearful of US-China trade turmoil at 5-yr high, survey shows

More than half the American businesses in China, the most in five years, say they are concerned about a further deterioration in the bilateral relationship between the world's two largest economies, a survey published on Thursday showed.

The annual survey by the American Chamber of Commerce (AmCham) in China showed 51% of respondents were concerned about a future deterioration in the U.S.-China relationship.

It was released just days after U.S. President Donald Trump took office for a second term with the threat of increasing trade tariffs on Chinese imports.

"A stable and constructive relationship, grounded in economic and trade ties, is critical not only for the prosperity of our two nations but also for global economic stability," said AmCham China Chair Alvin Liu.

Geopolitical tensions, policy uncertainties, and trade disputes were major concerns of U.S. businesses in China, AmCham China said.

"I think this shows the importance of maintaining a stable, healthy and sustainable China-U.S. relationship," foreign ministry spokesperson Mao Ning told a regular press conference on Thursday in response to a question on the survey results.

"We also hope that the U.S. can meet China halfway, and promote bilateral relations returning to a path of healthy and stable development."

The survey of 368 AmCham China member companies was completed between October and November last year, partly after Trump won the presidential election on Nov. 5.

His previous term as president was marked by a U.S.-China trade war and a deterioration in diplomatic goodwill between the two countries that did not markedly improve during President Joe Biden's four years in office.

On Tuesday, Trump said his administration was discussing a 10% punitive duty on Chinese imports that could be imposed from Feb. 1 in relation to China's part in the global supply chain of fentanyl.

Almost half the respondents still ranked China as a top-three global investment priority, around the same level as last year. However, the proportion of companies that no longer listed China as a preferred investment destination rose three percentage points to 21% from last year's survey and was more than double pre-pandemic levels.

About a third of businesses reported unfair treatment in China compared with local firms, particularly in relation to market access and public procurement. That was around the same level as last year.