Record ex -exx of American companies from China
In 2024 As many as 30% of all such companies considered or started the relocation process from China – we read in CNBC. The previous record was recorded in 2022, when there were 24%of such entities. In 2017, when Donald Trump started his first term, the percentage of companies planning to leave the largest Asian economy was 23%. So we can see that the mood of US companies is even much worse than when they did not know what policy the controversial leader would pursue.
Another risk for US companies is the policy of the Chinese authorities, including it is possible to limit the freedom of operating enterprises – writes CNBC. The business in the Middle Kingdom has experienced this during the Covid-19 pandemic, to which Beijing responded with harsh lockdown. Companies understood then that they must introduce significant changes in their supply chains. These record data is a step towards greater diversification of supply sources and production itself.
Where are the companies from the US plan to move?
Where are American companies plan to relocate? Still the most popular direction in 2024 were the countries of Southeast Asia. 18% of companies, however, are considering transferring key areas of activity to the USA (a year earlier this percentage was 16%). 67% of US companies do not take into account the move from the Middle Kingdom – this is a decrease by as much as 10 percentage points. Compared to 2023 – writes CNBC.
President Donald Trump has already announced that he will cover goods imported from China to the USA 10 % duties that are to apply from February 1. Companies from the States indicate that Washington’s commercial tensions with Beijing are the biggest challenge for conducting business in this Asian country. The second next for them is the competition from Chinese companies.
Problems of the Chinese economy
American business also certainly observes the condition of the Chinese economy. And it has many problems. Economic growth slows down and is far below the level a few years ago. In addition, China has a huge crisis on the real estate market, poor internal consumption and a bleeding financial market. Secular demographic trends look no better. The Chinese workforce shrinks at a fast pace, and the antidote is to be rapidly developing robotics.