Why American companies shouldn't quit China:
"The overall relationship right now is quite tense," says U.S.-China Business Council President Craig Allen.President Donald Trump last month may have called for American companies to leave China, yet it would be a mistake for U.S. companies to do so, according to the president of one of the largest U.S.-China business groups.
Tensions between the U.S. and China – the world’s two largest economies – have flared amid heated disputes over trade and geopolitics, bringing relations to one of the lowest point since the two established diplomatic ties in 1979. So the overall relationship right now is quite tense and it is our view that the easiest set of issues to deal with would be the trade issues, and we’re hopeful that they could be resolved in accordance with both countries’ WTO obligationsA. Well, I think that the President is mostly concerned about the bilateral trade deficit that we have with China, and he was referring to mostly to exporters from China into the United States.
A. Well, there are many types of American companies, but I would say that the bulk of American companies -- and indeed if you look at our membership, 97% -- are profitable in China, and they are going to stay in China. They are going to grow their business in China. They are going to continue to invest in China because that's where the global growth is. Approximately 30-33% of global growth for the next 10 years is going to come out of China.
A. It is indeed. Chinese investment in the United States fell 80% last year, and to me, that is a tragedy, particularly for those unemployed Americans who are looking for jobs, particularly in rural areas, where Chinese companies tend to invest.
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