Erin Slawson

With several high-stakes engagements slated for next year — an April visit to Beijing by Trump, APEC in Shenzhen in November, the G20 in Miami in December, and a potential reciprocal state visit by Xi — neither side will seek to intentionally rock the boat. But the absence of a formal agreement, combined with pressure from parts of the US government that are concerned China policy is heading in the wrong direction, means the truce is fragile.

USCBC’s annual survey delves into the top challenges, opportunities, and priorities of US companies in China. Here are three themes that dominated the results this year.

New US tariffs and retaliatory tariffs from China have impacted US companies in China across sectors, but mitigation strategies vary. Nearly all firms are exploring further localizing their supply chains in China to build resilience to trade disruptions. Meanwhile, exemptions from China’s retaliatory tariffs on US imports are just starting to take shape, and the Chinese government has yet to announce an official point of contact for companies to make their case.

During its final month in office, the Biden administration has released a slew of measures regulating commercial relations with China, capping off years of work in some areas and jumpstarting new types of rulemaking in others. Recent measures include precedent-setting export controls on the semiconductors needed to power artificial intelligence (AI) models, new blacklistings, and a Section 301 investigation.

Skepticism and competition defined the US-China relationship for much of 2022, and these themes are expected to continue this year. With the tech competition intensifying and a renewed focus on China in the US Congress, this year will likely bring more uncertainty and continued challenges for multinational companies.