US firms in China will see ‘no light at the end of the tunnel’ in 2023, business council says
- Douglas Barry, communications and publications vice-president with the US-China Business Council in Washington, expects 2023 to be a very difficult year
- On Thursday, the US Department of Commerce added 36 Chinese firms to its entity list in a move to curb Beijing’s ability to leverage technologies for military use
Political friction, restrictions in the technology sector and an economic slowdown tracking China’s tight coronavirus controls will vex American firms next year even as company executives aim to return and rekindle operations, a US trade group official said.
“Many members say they will send executives once the country opens,” said Douglas Barry, communications and publications vice-president with the 265-member US-China Business Council in Washington.
“[But] 2023 is likely to be a difficult year with little light visible at the end of the tunnel unless it’s a train coming in your direction.”
American multinationals have poured hundreds of billions of dollars into China over the past two decades to capture a piece of the large and increasingly wealthy market. China received US$118.19 billion in US investment last year and US$123.9 billion in 2020.
With the downward slide in the bilateral relationship, businesses had to be extra careful about upsetting their China stakeholders
But tensions between Beijing and Washington have escalated with a litany of disagreements over Taiwan, hi-tech know-how, security and ideology.
