Tensions between the U.S. and China escalated under the Trump administration, which took a tough approach to addressing longstanding complaints about unfair business practices in the Chinese state-dominated system. Both countries applied tariffs on billions of dollars' worth of goods from the other. The White House subsequently put Chinese telecommunications giant Huawei and other companies on a blacklist that prevents them from buying parts from key U.S. suppliers.
The AmCham Shanghai study was conducted with PwC and included 50 chamber members with global revenue of more than $1 billion. The survey's scale was smaller than the 346 respondents who participated in AmCham Shanghai's annual business climate survey conducted from June 16 to July 16 this year.China's economic recovery from the coronavirus pandemic – while the U.S. is still struggling to control the outbreak – is also helping businesses.
The majority of companies with manufacturing operations in China intend to keep production in the country in the next three years, with only three firms planning to move at least 30% of manufacturing overseas, the survey found. The survey also found that only 13.7% of respondents intend to increase investment in China, with the majority sitting tight or undecided on their local development plans.