A newly released survey shows that due to the Sino-US trade war initiated by Trump, a large number of American goods have been squeezed out of the Chinese market due to high tariffs. Most European companies operating in China have begun to feel some positive impacts, or are expected to benefit from it in the future...

The survey results of the European Chamber of Commerce in China show that its member companies are expected to seize more market share from American companies while suffering from the overall economic impact of Trump's trade war.

The survey conducted last month found that 19% of the companies surveyed have already gained more business from Chinese and foreign customers due to the trade war. Another 36% of the companies surveyed have not yet felt the positive impact, but are expected to feel it in the future.

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“ The rumors we’re hearing are that there are a lot of European companies competing with U.S. companies, especially with imported products from the U.S., ” said Jens Eskelund, president of the European Union Chamber of Commerce in China.

“They see opportunities that if these (US) imports gradually disappear, China needs to look for suppliers elsewhere—non-US suppliers, which could bring potential benefits.”

However, he also emphasized that this does not mean that European companies have gained "estimable" net benefits from the trade war, and that the economic slowdown and uncertainty still put pressure on corporate profitability and investment plans.

Currently, although China has been known as the "world factory", many foreign companies, including American companies, still play an important role in this, especially in providing high-end machinery and industrial inputs. The import and export volume of foreign-owned wholly-owned or joint ventures currently accounts for more than 30% of China's total goods trade, and many of them use imported inputs to produce goods for local sales or export in China.

The survey shows that while the trade war has seriously damaged corporate confidence, European companies are still advancing their "localization" strategy for their Chinese operations, which means increasing local procurement of operations in China to reduce reliance on imports and reduce geopolitical risks.

" With all these tensions... China is still the place you need to stop if you are competing on price and quality. So while everyone is talking about risk and hoping to reduce reliance on China, we're actually seeing a little bit of the opposite."

Eskelund added, “It is no exaggeration to say how uncertainty this trade war has brought to our members. But we believe that China can turn crisis into opportunity and prove that it is a stable and predictable investment destination. ”

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