US-China relations remain companies’ greatest challenge in the China market, and despite the truce, both governments continue to release new economic security policies. Against this backdrop, the business environment remains challenging for most companies. This year, China’s macroeconomy returned as companies’ second-biggest challenge.
Over the past two years, tariffs and an uncertain business environment have prompted precipitous declines in US exports to China that have not been fully made up by export growth to other markets.
On January 15, 2020, President Donald Trump and Vice Premier Liu He signed a Phase One trade agreement between the United States and China, cooling a near two-year tit-for-tat tariff escalation. The agreement locks both countries into commitments on several issues of importance to USCBC and our members.
A company’s participation in domestic standards-setting institutions in China can contribute to its success in the market.
Standards serve as the building blocks for product development and help ensure functionality, interoperability, and safety. Amid trends in both the United States and China that are pulling apart technology supply chains, standards are the glue that make technology compatible between both countries and the rest of the world.
Every year, the US-China Business Council undertakes a comprehensive, econometric analysis of US goods and export data to China, broken down by states and voting districts.
In the 19th consecutive year of the US-China Business Council’s annual member company survey, and more than a year since tariffs have been imposed, three major themes dominated 2019 member survey outcomes.
The trade battles with China hit US goods exporters in 2018. Services exports increased, but at a slower pace than in previous years. Despite these challenges, China continued to be important to US economic growth, supporting more than 1.1 million jobs.
Since China declared a “war on pollution” in 2014, environmental protection has become a top political priority, evidenced by tough regulations, enforcement campaigns, and an emphasis in official rhetoric.
Despite positive commercial gains in the last year, American companies have strong concerns about the increasingly rocky US-China relationship and implications for the business environment in China.
US goods exports to China continue to outpace export growth to the rest of the world. In 2017, the United States exported more goods to China than ever before—more than $127 billion.
