Pandemic Makes U.S.-China Economic Breakup More Likely, U.S. Businesses in China Say
The coronavirus pandemic is creating concern that the US and Chinese economies will “decouple,” as COVID-19 disrupts supply chains and strains relations between the two countries. In March, 44% of 25 major US companies stated that decoupling would be impossible, compared to 66% in October. Therefore, enterprises have become increasingly wary of relations between the US and Chinese economies.
The survey, which was published on Friday, also found that a quarter of the companies are planning to begin sourcing some or all of their materials elsewhere, rather than from China, after the pandemic. Some of the businesses reported that they plan to change which region of China they get their materials from. 16% stated that they intend to shift production outside China. 40% of the companies stated that their supply chains would likely remain the same.