U.S. Companies Are Souring on China. Some Are Capping Their Investments.

U.S. companies aren’t breaking up with China, but tensions between the two countries and China’s economic slump have contributed to a low point in confidence among American businesses operating there.

Companies are trying to recalibrate as China’s economy slows and concern grows about policy as Xi Jinping has tightened control over the economy. An increased focus on national security in the U.S.-China relationship presents new risks and backlash for global companies. “China is becoming more challenging for foreign investors. What businesses need above all else is clarity and predictability, yet across many sectors companies report that China’s legal and regulatory environment is becoming less transparent and more uncertain,” said Sean Stein, chairman of the American Chamber of Commerce in Shanghai in a statement.

“No one is doubling down anymore. Firms are very cautious and are repatriating profits, not reinvesting. That’s a marked change from when companies used to think China was a great place to invest,” Lardy adds. Despite the challenges, there’s no mass exodus. Just a fifth of respondents in the survey are considering a China exit over the next one to three years. But about a fifth of respondents were looking to formally cap investment in the country, with technology, education and banking companies among the most represented in this group.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bosch, EU and blockchain companies to build decentralized IoT: IAA MobilityLeonard Dorlöchter, co-founder of Peaq Network, said the future of smart cities “wouldn’t work and function if they were built on a Web2 platform as we know them today.”
Source: Cointelegraph - 🏆 562. / 51 Read more »

Las Vegas Officials Want to Know How Much Water Companies Use Before Letting Them Move InAuthorities want to ensure a balance between water conservation and the metropolitan area's economic growth.
Source: Gizmodo - 🏆 556. / 51 Read more »

Tencent’s Top Shareholder Needs More Companies Like TencentProsus and Naspers, which made a wildly successful early bet on the Chinese tech giant, unexpectedly replaced their CEO.
Source: WSJ - 🏆 98. / 63 Read more »

Beware companies selling credit ‘repair’ servicesConsumers have a right to dispute mistakes on their credit reports. But if they’ve made late payments, that can’t be erased, consumer experts say.
Source: sltrib - 🏆 316. / 61 Read more »

California suing oil companies for hiding climate change risksThe state of California is suing some of the largest oil and gas companies in the world, accusing them of over 50 years of deception. The lawsuit claims the companies covered up the risks fossil fuels posed to the environment and protected their profits over the health of the planet. California Attorney General Rob Bonta joined CBS News to discuss the lawsuit.
Source: CBSNews - 🏆 87. / 68 Read more »

Best pet insurance companies for dogs 2023Pet insurance can save dog owners significant sums of money, especially if they use one of these companies.
Source: CBSNews - 🏆 87. / 68 Read more »