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No polled US firms in China shifting production back to US, AmCham survey finds

Tariffs imposed by Washington have not only squeezed Chinese exporters, many US businesses operating in China are also finding themselves caught in the crossfire of a trade war they cannot control, according to fresh findings from a US business chamber.

Meanwhile, President Donald Trump’s plan to bring manufacturing back to the US may face challenges, as American firms said they were localising in China, rather than returning home.

The escalation of US-China trade tensions – particularly through tariffs – is placing mounting pressure on US companies operating in China, with increased costs and reduced competitiveness, according to the results of a survey by the American Chamber of Commerce (AmCham) in China. It was conducted from May 23-28, with responses from 112 member companies across various sectors.

“Tariffs are an added challenge for our member companies at a time when operating in China is already becoming more complex,” said Alvin Liu, AmCham China chair.

Despite the challenges, however, most companies are not planning to exit China, the survey found.

“Instead, they are localising operations or shifting some production to third countries,” AmCham China said in a statement about the findings. “None report shifting production back to the US.”

US-China trade relations have been sailing on tumultuous seas in the past few months, but the storm appeared to calm a bit on Thursday with a call between Trump and President Xi Jinping. They reportedly discussed the troubled trade ties, China’s rare earth exports and overseas students, while invitations were also extended by both to visit their respective national capitals.

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