Rep. Gus Bilirakis, R-Fla., said businesses around the world are slowly realizing the dangers of investing in China. Bilirakis told Federal Newswire Aug. 9 that he will continue to work to improve American jobs and opportunities.
“Businesses, both domestically and internationally, are beginning to recognize that investing in China offers more risks than reward," Bilirakis said. “I’ll continue working to create a climate in which American businesses can thrive and compete while encouraging investment in American job opportunities."
Optimism among U.S. businesses in China hit a historic low due to intense competition, economic challenges and regulatory issues linked to Beijing's ongoing zero-COVID policies, Reuters reported in October 2022. Only 55% of surveyed companies, conducted by the American Chamber of Commerce in Shanghai and PwC China, held a positive outlook for their five-year business prospects.
That marked the lowest level in the survey's 23-year history, worse than during the initial COVID-19 outbreak in 2020 and the trade tensions between Beijing and Washington in 2019, Reuters reported. About half of the companies expressed diminished confidence in China's economic management over the past year, with fewer planning significant global investments in the nation.
The Reuters article reported the surveyed businesses identified domestic competition as their primary challenge over the next five years, followed by tensions between the U.S. and China, economic deceleration and COVID-related travel limitations. The ascent of private digital entities in the local market have intensified competition.
Beijing's focus on self-sufficiency in critical industries, persistent COVID-19 measures and worldwide geopolitical tensions all contribute to an unfavorable business landscape, according to Reuters.
Most firms still remain committed to China due to its expansive market, workforce and supply chain. A minority of companies suggest the possibility of considering departure from China in the next one to three years, Reuters said.
According to Federal Newswire, Christian Whiton, a former State Department senior advisor, called for “strategic decoupling” rather than an immediate clean break from doing business in China.
“It's not that we're going to have an immediate traumatic break with China, which would be hard since we're so dependent on them for a lot of things," Whiton said to Federal Newswire. "But over time, we could shift away.”
