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USA companies in China are ‘suffering’ in trade war, survey says

14 September 2018

In recent meetings with cabinet-level Chinese officials, USCBC representatives were told that licensing won't resume "until the trajectory of the U.S".

The two governments have imposed 25 percent tariffs on $50 billion of each other's goods.

A series of companies want President Trump to know that tariffs are hurting US industries.

American companies in China are being hurt by tariffs in the growing trade war between Washington and Beijing, according to a survey of hundreds of firms, prompting the US business lobbies behind the poll to urge the Trump administration to reconsider its approach. -China trade talks and action by Turkey and Russian Federation to support their currencies helped foster a positive mood.

One of the highest-profile casualties of the trade war was United States chipmaker Qualcomm's (QCOM) $44 billion acquisition of Dutch rival NXP Semiconductors (NXPI), which China killed in July by refusing to grant it regulatory approval.

"This survey affirms our concerns: tariffs are already negatively impacting US companies and the imposition of a proposed $200 billion tranche will bring a lot more pain", said AmCham Shanghai chairman Eric Zheng. American officials also worry they might erode USA industrial leadership.

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"Even if all of the tariffs threatened by Trump on autos and China are imposed, those would amount to, at most, 0.8 percent of GDP, which would cause barely a ripple in growth, inflation or employment numbers", said Mr. Scott, senior economist at the think tank.

The White House has sought to pressure Beijing to reduce its trade surplus with America and protect intellectual property rights of US companies, which it says are abused in China.

Details on the potential talks were thin, but Larry Kudlow, White House economic advisor, said the prospect of talks was a positive development.

US business groups are escalating their fight against Trump's tariffs, with over 60 industry groups launching a coalition to put political pressure on the Trump administration to seek alternatives to tariffs. "That's what we've been asking for months and months".

Trump imposed his first phase of tariffs this summer on $50 billion of Chinese goods, including high-end technology parts and manufactured goods, while Beijing fired back dollar-for-dollar at U.S. soybeans, autos and other farm goods.

The timing and location of the proposed meeting were unclear, the sources familiar with the matter said.

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However, the last round of talks, between mid-level US and Chinese officials in August, failed to reach any agreement.

So far, the United States and China have hit $50 billion worth of each other's goods with tariffs in a dispute over USA demands that China make sweeping economic policy changes, including ending joint venture and technology transfer policies, rolling back industrial subsidy programs, and better protecting American intellectual property.

A U.S. Treasury spokesman did not respond to requests for comment.

The invitation was first reported by the Wall Street Journal.

The US and China have slapped tariffs on $50bn of one another's goods this year in an escalating trade war between the world's two largest economies.

A worker places U.S. and China flags near the Forbidden City ahead of a visit by U.S. President Donald Trump to Beijing, in Beijing, China November 8, 2017.

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USA companies in China are ‘suffering’ in trade war, survey says