US, Chinese CEOs Offer a Mixed View of Commercial Relations
DATE:  Apr 24 2019
/ SOURCE:  yicai
US, Chinese CEOs Offer a Mixed View of Commercial Relations US, Chinese CEOs Offer a Mixed View of Commercial Relations

(Yicai Global) April 23 -- Chinese and US corporate executives are cautiously optimistic on their future business prospects, but their views diverge on whether commercial relations will return to where they were prior to current tensions, a recent poll by the US-China Business Council and the Committee of 100 has found.

These sentiments come as negotiators from both countries continue to scramble to reach an agreement addressing a battery of trade issues that have strained bilateral relations and roiled world markets, the poll shows.

The chief executive officer snap survey of 55 top executives whose companies are committed to doing business in both the US and China was conducted by the USCBC and the C100. USCBC represents American companies that do business with China. C100 is a non-profit US organization of prominent Chinese-American leaders advancing constructive dialog between the world's two largest economies.

The executives surveyed worried that an eventual agreement will not address all of their major concerns and trade relations will still follow a rocky path for the foreseeable future. Chinese executives were more optimistic than their American counterparts, however.

The survey results reflect a mostly pragmatic outlook on the future trade relationship, said USCBC President Craig Allen. "Businesses in both countries plan to stay engaged, with most planning to maintain or increase investments," he added. "However, a minority of US and Chinese companies are planning to curtail investments, believing that business conditions aren't likely to improve enough."

The survey results indicate more must be done to stabilize the business environment for American and Chinese companies, noted C100 Chairman H. Roger Wang, speaking at the 30th anniversary C100 annual conference in New York City. "The challenges for these companies in each other's market are reflected in the survey outcomes," he said, adding, "While Chinese companies are more confident that business will return to normal after an agreement, fewer are prioritizing the United States than their American counterparts are in their approach to China."

Key Findings:

-Over three-quarters of executives believe the ongoing talks will ultimately yield a partial agreement on trade issues.

-Most view frequent presidential summit meetings as imperative for US-China relations.

-Executives are almost evenly divided about prospects for "business as usual" returning after an agreement, with more Chinese than American executives expecting a return to the status quo ante.

-More American executives are prioritizing China's market in the next five years, in contrast to Chinese executives' dimmer views of the US market. While 68 percent of CEOs said they will prioritize each other's market, those not sharing that prioritization were all Chinese.

-Just over half of executives stated that the trade war has not affected their ability to do business with partners in each other's countries, but more Chinese than Americans reported such problems.

-Only 27 percent of respondents indicated their brands had been negatively affected by US-China tensions, but two-thirds of those who did were Chinese.

-Most companies indicated they will maintain or accelerate their investments in each other's markets in the next year, but most who said they will curtail them were Chinese.

Editor: Ben Armour

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Keywords:   China ,US,US-China Business Council,Committee of 100