More than 70 percent of U.S. firms operating in southern China are considering to move some of their manufacturing to other countries as the trade war between U.S. and China bites into profits, Reuters reports, as referred to the poll by the American Chamber of Commerce in South China, which surveyed 219 companies.
85 percent of U.S. companies said their profits were down due to a mutual increase in duties between Washington and Beijing. It turned out that only 1 percent of American companies located in the PRC intended to transfer business to their homeland. President Donald Trump called for the return of American business to the United States, introducing additional customs barriers against China.
U.S. companies reported facing increased competition from rivals in Vietnam, Germany and Japan. Customers are slowing down orders or not placing them at all, president of AmCham South China told Reuters.
He said that one of the most difficult things about market share is once you lose it, it is very hard to get back.
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