Washington’s latest decision to impose new tariffs on $200 billion worth of Chinese exports won’t make China-based American companies relocate to the US, but will “cause suffering” for them, the American Chamber of Commerce says.
According to the trade group representing US businesses in China, half of the American companies operating in the country are worried there will be a “strong negative impact” from the recently escalated trade dispute.
“This will not result in bringing more business back to American soil: just six percent of our member companies say this current US-China trade dispute would make them consider relocating operations back home,” William Zarit, the chamber’s chairman, said in a statement.
Zarit stressed that Beijing might be able to “dig its heels in” while preventing a short-term resolution to the current trade conflict, adding that “no one will emerge victorious from this counterproductive cycle.” According to the chairman, the Chinese authorities could deploy a wide range of measures to disrupt the operations of US companies in the country.
On Tuesday, Beijing announced a tariff hike on $60 billion of US goods in response to President Donald Trump’s latest decision to increase import duties on Chinese products in a dispute over Beijing’s technology policy. Trump previously vowed to immediately retaliate with further tariffs on around $267 billion of Chinese imports if Beijing introduces tariffs in response to the latest measure.
Earlier, the American Chamber of Commerce warned Washington not to underestimate Beijing’s determination to fight back.
“The downward spiral that we have previously warned about now seems certain to materialize,” Zarit said at the time.
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