Dhaka, Bangladesh
US firms expect leaner times in China as trade war grinds on

US firms expect leaner times in China as trade war grinds on

SHANGHAI, Sept 11: American businesses are increasinglypessimistic about their prospects in China as the US trade war rumbles on,with growing numbers of companies expecting their revenues and investment inthe local market to shrink, a survey said on Wednesday, reports AFP. The American Chamber of Commerce in Shanghai's annual China BusinessReport also found that 75 percent of US firms opposed the US use of punitivetariffs to force China into a trade deal and market-access reforms.President Donald Trump says his tariffs against billions of dollars inChinese goods - which have been reciprocated by Beijing - are hurting Chinaand are good for the United States. But only half of US companies surveyed said they expect 2019 revenues inChina to increase year-on-year, while just over a quarter expect them to fallcompared with just 6.1 percent in the previous year's poll.Overall, most members of the chamber remain optimistic about a countrywhose consumer market is still blossoming. The report also found China's ongoing economic slowdown which predatesthe trade war remains the top overall concern of US companies.But the standoff is a very close second, and more than half of companiessurveyed said they were delaying or reducing further investment in China as adirect result of the tit-for-tat tariffs.Just 47 percent said they expected to increase their investments in Chinain 2019, down from 61.6 percent last year. "American companies continue to do well in China, but the trade conflictnow shadows many businesses," said Eric Zheng, chairman of the tradeassociation. Some of the biggest swings in the survey came in the area of futureexpectations for China's market, with 61.4 percent expressing optimism, downfrom historical rates in the 80-90 percent range. At the Interbank Foreign Exchange, the rupee opened at 71.82 then fell to 71.84 against the US dollar, showing a decline of 13 paise over its previous closing. The Indian rupee on Monday had closed at 71.71 against the US dollar. Forex market was closed on Tuesday on account of Muharram. Forex traders said rising brent crude prices and foreign fund inflows weighed on the domestic currency. Brent crude futures, the global oil benchmark, rose 0.87 per cent to $ 62.92 per barrel. Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 188.08 crore on Monday, as per provisional data. Market participants however said positive opening in domestic equities added support to the local unit and restricted the downfall. Domestic bourses opened on a positive note on Wednesday with benchmark indices Sensex trading 133.04 points up at 37,278.49 and Nifty up 36.15 points at 11,039.20. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose marginally by 0.01 per cent to 98.33. The 10-year government bond yield was at 6.61 per cent in morning trade. Meanwhile on the global front, US President Donald Trump has claimed that China had lost trillions of dollars and three-million jobs due the tariffs his administration had imposed against the country. Trump asserted that the United States was doing very well against China, adding that the Chinese wanted to negotiate a trade deal "very badly". The top two economies of the world have been locked in a bitter trade warsince last year, imposing tit-for-tat tariffs on goods worth billions ofdollars. For the past 10 months, both the countries are negotiating a tradedeal, but without any success.

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