Beijing/Washington: The American Chamber of Commerce in China has warned that there is an atmosphere of fear, among the US companies in China, because of the import taxes imposed by President Trump and the action taken against Huawei. The American Chamber of Commerce, in its report, has said that the trade of nearly 200 US companies, in China, has been hit because of the US action. Owing to this, the US companies are making moves to take their businesses out of China.
Warning that the United States suffers a loss of $500 billion per annum, in the bilateral trade with China and this will not be tolerated; henceforth, President Trump announced the imposition of fresh taxes on the Chinese goods, two weeks ago. Taxes at a rate of 25% have been imposed on Chinese goods, worth $250 billion, imported into the United States. At the same time, President Trump has threatened to impose tax on the balance Chinese goods worth $325 billion, imported into the United States.
Following the taxes, President Trump has made the action against the Chinese company Huawei, more comprehensive. There is tremendous displeasure in China over the taxes on exports and the action against Huawei, and the US companies have started facing the backlash. The American Chamber of Commerce has released a report after a dialogue,with nearly 250 US companies, having businesses in China.
The American Chamber of Commerce report talks about the suffering trade of the US companies and the atmosphere of fear. At the same time, it notes that these companies are focusing on the plan to move out of China, given the actions of the Chinese government. It also draws attention to the Boycott Apple campaign initiated in China, after the action against Huawei.
A few days ago, a US trade group had claimed that many US companies in China were planning to shift their operations to India.