U.S. companies in China are increasingly optimistic about the country’s economic outlook but worried about overall relations between the Washington and Beijing, according to a survey released today by the American Chamber of Commerce in China.
Some 59% of members surveyed had a positive outlook about the next two years, a 22 percentage-point increase compared with a business outlook report released by AmCham China in early March. Similarly, 59% of members also expressed positive views on China’s domestic market growth, up from 42% in the previous survey, AmCham China said.
Nonetheless, 87% of respondents were pessimistic about U.S.-China relations, compared with 73% in the early March report. Mixed American feelings about ties with China were spelled out in a speech by U.S. Treasury Secretary Janet Yellen last week, in which she called for more collaboration yet aired complaints. (See earlier post here.)
The new AmCham China survey was conducted from April 18-20, drawing responses from 109 companies with operations throughout China; responses for the poll released in early March were mainly collected in October to November 2022. AmCham China has nearly 1,000 members including Apple, Merck, KKR, Morgan Stanley, Microsoft and Intel.
AmCham China’s latest survey also found that the majority of respondents (73%) are not moving their supply chains outside of China, while another 23% are either considering or already starting to relocate.
Risk management was the top reason given for those considering relocation, as reported by 44% of the respondents, AmCham China found. Some 27% of the respondents reported that their companies had “re-prioritized” other countries, a 21-percentage point increase from AmCham China’s previous survey.
Meanwhile, 51% of companies said foreign expats showed interest in relocating or returning to China following the end of the country’s “zero-Covid” policies this year; 68% of members cited bilateral tensions and other geopolitical risk as the top issue for foreign expats to consider in their decision. More than one fifth of respondents said foreign employees were still refusing to accept assignments in China. The lack of sufficient international flights was also a main concern, cited by 44% of members, the survey found.
In a sign that China is starting to see increased engagement with executives from around the world after Covid-related disruptions, 43% of respondents reported their global or regional executives have already visited China since December 2022., AmCham China said. Another 31% of members reported their global or regional executives will visit China in the coming months, according to the survey.
AmCham China further found in a White Paper released today that impact of the past three years of the pandemic is still being felt across many industries, despite the removal of Covid prevention measures and travel restrictions. In addition, a Chinese government-led emphasis on self-reliance is creating additional uncertainty for foreign businesses, it said.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
