US firms in China stall investment, mull exodus as trade war costs bite

MORE than 70 per cent of American firms operating in southern China are considering delaying investment or moving out, says a poll by the American Chamber of Commerce in South China, Reuters reports.

The survey of 219 companies, one-third from the manufacturing sector, said most operating in China believe they are suffering more from the trade dispute than firms from other countries.

Sixty-four per cent said they were considering relocating production lines outside China, but only one per cent said they had any plans to establish manufacturing bases in America.

"While more than 70 per cent of the US companies are considering delaying or cancelling investment in China, and relocation of manufacturing out of China, only half of their Chinese counterparts share the same consideration," the AmCham report said.

The trade war is shifting both supply chains and industrial clusters, mostly towards Southeast Asia, the survey found.