More U.S. companies say they are hurt by current trade tensions than their Chinese counterparts, according to a survey by the American Chamber of Commerce in South China.
The Special Report on the Impact of U.S. and Chinese Tariffs, released Monday based on the survey, showed that most respondents see the expansion of the Chinese market as one of the most important remedies for the imposed tariff, which sheds light on the priority of the Chinese market.
A total of 219 companies, also members of the chamber, participated in the survey conducted between Sept. 21 and Oct. 10. Participants include companies from China, the United States, Canada, the European Union, Japan and Australia. Over 90 percent have operations in China.
According to the report, the combined tariffs have negatively impacted various industries and companies not only from the United States and China, but also those from other origins, affecting business operations and resulting in substantial loss of business volume and market share.
Chamber president Harley Seyedin said the immediate impact had not yet been completely felt by the businesses since much of the orders for export items from both countries had been placed long in advance of the dispute, and in many cases few alternative sourcing options were available.
"The primary concern at this point is that consumers in both nations may have to pay slightly more for many items now and likely much higher prices in the not too distant future," Seyedin said.
According to the report, although plans for relocation of manufacturing lines outside of China are considered by a majority of respondents, only very few participants will give up the Chinese market, and just 1 percent of the participants indicate any plans for establishing manufacturing in North America.
"What worries me the most is not so much the immediate impact, but the potential long-term loss of access by Chinese companies to the U.S. market and, as a result, American companies' access to a market that will eventually have five times as many consumers as the United States," Seyedin said.
He suggested that all the differences could and should be resolved through friendly discussion.