U.S. companies at the forefront of the trade war are increasingly pessimistic about President Donald Trump‘s strategy to boost their sales in the Chinese market, according to a new study by a leading business organization.
Of the 333 members who participated in an annual survey by the American Chamber of Commerce in Shanghai, 75% said they opposed the US using tariffs, up from 69% a year ago. Only 14% said they support Trump taxes, a five percentage point increase.
Instead of tariffs, 29% demanded extended government dialogue and 24% wanted more multilateral pressure with the EU and other groups.
Only 7% expect an improvement in trade within the next six months, compared to 36% who said the situation would last for one to three years. Furthermore, 13% said they expected trade tensions to continue for three to five years, and 17% said they expected the situation to last indefinitely.
Of the companies surveyed, 5% said tariffs had led to an increase in their income, compared to a third who said their income had fallen by 10%. Another 13% of respondents said their income dropped by 20%.
One of the Trump administration’s goals in the trade war – ending forced transfer of technology and intellectual property from US companies in exchange for access to the Chinese market – is not a major concern for AmCham Shanghai members, with only 4.4% of respondents that say was the most important issue for their businesses.
Thirteen percent of respondents reported pressure to transfer technology, down 8.2 percentage points from the 2018 survey./Investing.com