American Businesses Cutting Down Investments in China: AmCham

According to a survey by the American Chamber of Commerce in Shanghai, a majority of American businesses are projecting lower revenue growth on account of the ongoing trade war between US and China. Five year optimism among members of the association has dived the lowest levels since 2015 as the trade dispute between the two countries rages on for over a year.

Companies considering increasing their investment in China have dropped by 14.4% compared to 2018 while an additional 12.2$ of AmCham member companies are planning to decrease their investments in China on the back of ongoing trade tensions and tariff hikes. The survey also reveals that over 25% of companies have already redirected investments originally planned for China towards other locations – this figure is 6.9% higher since the previous year.

Most companies that are reducing investments are from the technology, hardware and software sectors – 40% of them have redirected their investments to outside China. The trade war is not only affecting investment decisions but also hiring, with nearly 20% companies planning to reduce their staff. When compared to last year, fewer companies are planning to hire more staff in 2019.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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