US businesses in China worried about uncertainties

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Europe

02:59

US companies operating in China are worried about the uncertainties brought by the ongoing trade frictions between China and the US, said Harley Seyedin, president of the American Chamber of Commerce in South China.

“These companies are watching how it will affect their business,” Seyedin told CGTN.

Compared to short-term effects, Seyedin says the long-terms effects of the trade frictions are more concerning.

"Short-term effects of course can be addressed. Long-term effects are what I’m really worried about because if it goes for a long time, and the frictions last, then both sides will start to look for alternative sources. That will have a serious impact on the supply chain."

Seyedin also said the US trade deficit with China is a legitimate concern, yet the question is how do we address the issue, and how long will it take to solve it.

"That has a lot to do with the state of development China is at right now. At this moment China is still producing a lot of goods for the US market, but that’s changing. It’s a self-correcting problem."

He added that it will be rebalance itself because consumer markets in China are growing very rapidly.

According to Seyedin, in 2003, only less than 23 percent of the chamber's members ( American companies operating in South China) were selling their products to China. However, as of March 1, 2018, 73 percent of them were no longer in the export business, but primarily producing products for the Chinese market.

The American Chamber of Commerce in South China represents some 2,300 members, who account for nearly 40 percent of all US-China business trade and investment.

“Our companies have invested billions of dollars in the Chinese market and contributed a great deal in the development of China over the last 20 to 25 years. They have been very profitable, and successful, and they continue to reinvest in this market,” said Seyedin.

Seyedin believes it’s important that the two countries continue to discuss ways to further open up their markets to each other.

“That’s only going to be achieved through cooperation, through mutual and friendly discussions. In arguments, usually things don’t get resolved. They get resolved when people talk to each other.”