ANN/THE NATION

The World Economic Forum (WEF) has revealed the findings of the 2025 annual survey by the US-China Business Council (USCBC), highlighting growing concerns among US companies operating in China regarding the rise in tariffs and increasing trade volatility.

According to the USCBC survey, customs duties have become the second most urgent challenge for US companies, up from eighth place in 2024. Nearly 70 percent of companies have been directly affected by tariffs, while 88 percent have been impacted by the deteriorating US-China relations.

“American companies have drastically reduced investments in China to an all-time low, as trade tensions and tariffs continue to impact economic relations between the two largest economies in the world. Only 48 percent of US companies plan to invest in China this year, a significant drop from 80 percent in 2024,” the report stated.

The survey also revealed that confidence in China’s economic growth prospects has been steadily declining, with little hope for improvement in US-China relations.

The USCBC, a non-partisan, non-profit organisation representing over 270 major US companies doing business in China, conducted the survey from March to May 2025, during a period when former US President Donald Trump reignited the trade conflict between the US and China with efforts to reform US trade policies.

“The steep rise in tariffs after 2 April, coupled with prolonged negotiations, has shaken business confidence. Investment plans have been disrupted, and broader relations have deteriorated,” the report continued.

The report noted that the escalating tensions are forcing companies to reassess their investment strategies in China due to structural economic challenges and political instability in recent years. As a result, many US companies are shifting their supply chains and reducing new investments in China in the near term.

The financial impact of the tariffs has also been significant. The survey found that more than a third of companies have lost sales due to US tariffs, and half of the respondents reported that Chinese customers have switched to non-US suppliers to avoid uncertainty.