Most US businesses in China are hurting from the tariffs war between the two countries, forcing some companies to relocate abroad or refocus their business, a survey showed Wednesday.

The recent poll by the American Chamber of Commerce in China and its sister organisation in Shanghai paints a gloomy picture of the business environment for American companies.

Three-quarters of the 250 respondents said increases in US and Chinese tariffs are having a "negative impact" on their business as orders were drying up owing to rising manufacturing costs and prices.

Nearly half said they have experienced non-tariff retaliatory measures in China since last year, with one in five reporting increased inspections and a similar amount enduring slower customs clearance. And 14 percent complained of other complications from increased bureaucratic oversight and regulatory scrutiny.

The United States and China have so far exchanged tariffs on more than $360 billion in two-way trade.

The poll was conducted from May 16 to May 20, days after the United States more than doubled duties on $200 billion in Chinese goods and Beijing retaliated with higher duties on $60 billion in American products.

The poll showed that 35 percent of companies would adopt an "in China for China" strategy -- sourcing within China and targeting the domestic market -- as a result of tariffs.

But more than 40 percent said they were "considering or have relocated" production facilities outside China, with Mexico and Southeast Asia the prefered alternatives for manufacturing.

Fewer than six percent said they have moved or are considering moving their factories to the United States, undercutting President Donald Trump's hopes of seeing American companies move production back home.

Trump launched the trade war last year to extract profound economic reforms from Beijing, accusing China of seeking to forge global industrial dominance through massive state intervention in markets and the theft of US technology.

Despite the pain, more than half of respondents said they favour protracted trade talks to continue in order to address "structural issues allowing them to operate on a more level playing field".

Others wanted a quick deal and a return to the "pre-tariff predictability and stability" that existed before the world's two biggest economies locked horns.

After talks ended in Washington this month China's top trade negotiator Liu He said another round would take place in Beijing, but neither side has announced a date.

Trump has left open the door for reconciliation, saying he expected a "fruitful" meeting next month with his Chinese counterpart Xi Jinping at a Group of 20 summit in Japan.

Chinese ambassador blames US for sinking trade deal
Washington (AFP) May 22, 2019 - China's ambassador to the United States said in a Tuesday interview with Fox News that Washington repeatedly "changed its mind overnight" and sunk deals that could have ended the two countries' trade war.

Ambassador Cui Tiankai also slammed as "politically motivated" the White House's move to ban the transfer or sale of US technology to Chinese telcom giant Huawei.

"We are very worried. Such actions will really undermine people's confidence in the normal function of the market," Tiankai told Fox.

Washington has long suspected deep links between Huawei and the Chinese military, and its moves against the company came amid the churning trade dispute.

After a six month ceasefire, the standoff erupted anew on May 10 when the United States increased punitive duties on $200 billion in Chinese imports after talks in Washington collapsed.

Beijing followed suit three days later, saying it would raise tariffs on $60 billion in US exports starting on June 1.

In the interview, Tiankai said the administration of President Donald Trump was to blame for the failure to reach an agreement.

"If you review the process of trade talks between us over the last year or so, it's quite clear it is the US side that more than once changed its mind overnight and broke the tentative deal already reached," Tiankai said.

"China remains ready to continue our talks with our American colleagues to reach a conclusion. Our door is still open," he added.

US officials this week however issued a 90-day reprieve on the ban on dealing with Huawei, saying breathing space is needed to a avoid huge disruption.

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EU firms 'caught in crossfire' of US-China trade war
Beijing (AFP) May 20, 2019
European firms are "caught in the crossfire" of the US-China trade war and fewer are optimistic about their future in the world's second-largest economy, a business survey showed Monday. The clash between Beijing and Washington does not benefit European companies, contrary to what some might have hoped at the beginning of the dispute last year, according to the European Union Chamber of Commerce in China. "Now the trade tensions are seen as another uncertainty on the business environment, someth ... read more