STORY HIGHLIGHTS


U.S. companies to expand business in China amid trade frictions

CNC
Added On July 8, 2019

A survey jointly conducted by American Chamber of Commerce in China and its branch in Shanghai reported that 74.9 percent of respondents said the increases in U.S. and Chinese tariffs are having a negative impact on their business.
 
According to the survey, the impact of the tariffs stems from weakened product demand, higher manufacturing costs and higher sales prices for products.
 
However, far from abandoning the market, some U.S. companies are actually expanding their business presence in China, counting on the long-term growth of the Chinese market.
 
Dow Inc., a U.S. materials science giant that has been operating in China for 40 years, recently broke ground on a new silicone specialty resin line in east China's Jiangsu Province, to meet the growing needs for high-performance materials.
 
For U.S. coffee giant Starbucks, China is its largest and fastest-growing international market.
 
The Seattle-based coffee chain is eyeing ambitious expansion in China by doubling its number of coffee shops to 6,000 by fiscal year 2022.
 
Many U.S. business expert said China is a great place for investment and a land of innovation.
 
Some said U.S. companies are investing behind the idea that China will rise and continue to rise.