United States: Even though company executives plan to reopen and resume operations, political strife, limitations in the technology sector, and an economic slowdown related to China's stricter coronavirus controls could loom large for American businesses next year will create problems, said a US trade group official.

"Many members say they will send officials once the country opens up," according to Douglas Barry, vice president of communications and publications for the 265-member US-China Business Council in Washington.

If there's any light at the end of the tunnel, it'll probably be a train headed in your direction in 2023.

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Over the past 20 years, American multinational corporations have invested hundreds of billions of dollars in China in an effort to gain access to the country's large and rich market. Last year, China received an investment of US$118.19 billion and by 2020 it would have received an investment of US$123.9 billion.

However, there are many areas where Beijing and Washington disagree, including Taiwan, technology, security and ideology.

Relations have deteriorated, especially since the trade war that former US President Donald Trump started in 2018 and affected US$550 billion in Chinese exports as well as US$185 billion in US imports.

In light of deteriorating bilateral relations, Barry told the Washington Post earlier this week, "Businesses had to be extra careful about upsetting their China stakeholders, as well as absorbing criticism and anger generated in the United States." faced sanctions and tariffs."

The department now requires special licenses to do business with companies on the list; It is seen as a move to limit Beijing's ability to use the technology for military purposes.

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In an interview with the Beijing-based American Chamber of Commerce in China earlier this month, Nicholas Burns, the US ambassador to China, suggested that businesses may be holding off on new investment due to uncertainty over China's economic policy.

"However, as an ambassador, I would advise businesses to avoid investments in China that would support the expansion and development of China's military industrial sector.

We do not want American investment to harm our national security interests or make the Chinese more competitive in areas that are essential to our security.

According to Barry, China already bans the manufacture of some "high-performance microchips" and more could follow.
He did not specify which companies would be "closely monitored" by Chinese authorities or whether the number of Chinese companies "blacklisted" in the US was likely to increase in the coming months.

The Biden administration announced in October that it would impose sanctions on 31 Chinese businesses, research centers and other organizations to block their access to key American technologies.

According to Barry, American businesses have already endured a lot in dealing with lockdowns and transportation restrictions during the pandemic.

He claimed that although the Chinese government has attempted to aid companies affected by the pandemic, actual aid has been "spotty" in part due to a complex system of layers.

Businesses exporting products had to deal with port traffic delays and exorbitant shipping costs," Barry said.
Certain item taxes created additional headaches. Navigating the so-called "closed loop," where employees were required to sleep on the job, was particularly challenging.

According to Barry, demand for American goods has plummeted as the Chinese economy has slowed under control of the virus.

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Liu Qing, a professor of national development and strategy at Renmin University, said at a forum on Thursday that US companies have reduced their presence in China since the 2008 global financial crisis.

According to Liu, who spoke at the China-US Political and Economic Forum, the US is "trying to weaken its reliance on China."

According to Liu, China has lost tax revenue, jobs and "models" for the demonstration.

Asked about this week's WTO review of US trade policy, Chinese Foreign Ministry spokesman Wang Wenbin described Washington as a "subversive of the multilateral trading system", a "disruptor of global industrial and supply chains" and an "expert". referred to as unilateralism and intimidation."

According to Barry, most US officials have found it difficult or impossible to travel there during the pandemic, due to the challenges of obtaining visas and following quarantine rules once inside China.