U.S. Firm Business Expectations in Communist China Fall To A Record Low

According to a recent survey, the U.S. company business outlook for Communist China has fallen to an all-time low under the dual pressure of tense diplomatic relations between Washington and Beijing, as well as the Chinese Communist Party (CCP)’s increasingly tightened domestic regulations.

 The U.S.-China Business Council surveyed 117 U.S. multinational companies, showing that 21% of U.S. enterprises are pessimistic regarding their five-year business outlook in Communist China, citing the communist dictatorship’s continuous challenge to the world order and the regime’s deteriorating diplomatic relationships with Europe, the United States, and other countries. Moreover, nearly 90% of U.S. firms doing business with Communist China have suffered irreparable sales losses due to the U.S.-China trade war.

 Compared to the worsening diplomatic relations between the two countries, American firms are more concerned about the CCP authorities’ pandemic control measures, as around 96% of U.S. companies in Communist China have suffered significant profit losses due to the CCP’s dynamic Zero-Covid policy. The uncertainty of logistics and production has forced most U.S. firms to change their supply channels. As a result, more than half of the U.S .companies have canceled or paused their investments there.

 In addition, most surveyed U.S. respondents no longer consider Communist China their primary market. U.S. companies are rethinking their future due to Beijing’s military threat to Taiwan, as well as genocide crimes and forced labor in Xinjiang. Nearly a quarter of respondents have relocated part of their supply chains out of the country.