American Businesses Cutting Down Investments in China: AmCham - Forex News by FX Leaders
US-China trade war

American Businesses Cutting Down Investments in China: AmCham

Posted Wednesday, September 11, 2019 by
Arslan Butt • 1 min read

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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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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