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U.S. companies feeling the pain of trade dispute with China

A survey released last week revealed that American companies are facing backlash in China over continuing trade disputes between the two countries. Less than two weeks after the U.S. increased tariffs on Chinese imports, nearly half of members of the American Chamber of Commerce in China reported facing retaliatory measures by the Chinese government.

American businesses report adverse treatment in China due to tariffs

According to a report by the Financial Times, many American-based businesses are experiencing retaliation in China. Forty-seven percent of members of the American Chamber of Commerce in China and its Shanghai equivalent said that increased tariffs were not the only consequence they saw in the ongoing dispute.

Some of the impacts reported include:

  • Slower customs clearance
  • Increased numbers of inspections
  • Delayed license approvals

As trade talks between the U.S. and China continue to stall, American companies will likely have to make some difficult decisions in the weeks and months ahead.

Businesses faced with tough choices

One-third of the 239 American companies in the survey said they are considering canceling or putting off investments in China. Meanwhile, almost 75% said tariffs were hurting their ability to compete in China. With no new trade talks currently scheduled, it seems conditions are not likely to improve for American businesses in the Chinese market any time soon.

Those doing business in China can benefit from legal counsel experienced in the legal systems of both countries. Whether their concerns relate to intellectual property theft, negotiating contracts, or litigation between international companies, a well-rounded perspective can lead to better results.

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