‘MORE FIRMS DELAY, CANCEL INVESTMENTS’
54pc of firms in AmCham survey say impacted by US-China trade war
THE United States-China trade war is weighing more heavily on businesses operating in Asia Pacific, with companies reporting more delays or cancellation of investments than last year.
The impact on investment was cited by 54 per cent of firms surveyed by the American Chamber of Commerce (AmCham), here, up from 50 per cent late last year, it said in a report yesterday.
More businesses than last year
are also considering re-adjusting supply chains away from China and the US.
Over the past six months, 41 per cent have seen a “slight” negative impact from the trade war, and eight per cent registered “strong” negative, while 32 per cent reported no impact. Forty per cent see the trade war deteriorating further, with 30 per cent each saying it would stay the same or be resolved soon.
The survey results cast a darker picture for the US-China trade war on the eve of a scheduled meeting between President Donald Trump and Xi Jinping on the sidelines of Group of 20 meetings in Osaka, Japan.
While investors pin hopes on some easing in friction between the two economies, they are looking at possible worst-case scenarios, including a potential 25 per cent tariff hike on US$300 billion (RM1.2 billion) in Chinese goods.
The AmCham survey included 144 respondents, around 90 per cent of which have operations either globally, across Asia Pacific, or across Southeast Asia. USbased firms made up 61 per cent of all respondents, and manufacturing businesses had a 22 per cent share.
There were some silver linings in the survey.
Vietnam was heralded as a trade-war winner amid rising tariff tensions, offering a highgrowth, low-cost environment for businesses to shift orders and production. The AmCham survey cited respondents looking at a potential manufacturing shift towards India.
However, respondents still see a favourable outlook over the next six months, with 88 per cent seeing Southeast Asia as a more or equally attractive place to do business compared with other regions. That share is up from 75 per cent last year.