logo
U.S. Firms In China Committed To Market Amid Headwinds

U.S. Firms In China Committed To Market Amid Headwinds

Forbes3 days ago
U.S. President Donald Trump holds up a chart while speaking during a 'Make America Wealthy Again' ... More trade announcement event in the Rose Garden at the White House on April 2. Touting the event as 'Liberation Day', Trump is expected to announce additional tariffs targeting goods imported to the U.S. (Photo by)
More than 80% of American companies doing business in China were profitable last year and remain committed to doing business there despite rising concerns about Washington-Beijing relations and tariffs, according to a new survey by a top U.S.-China business group.
'While most U.S. companies are holding off on new investments in the near term, they remain committed to pursuing opportunities in China over the long term,' according to an annual membership survey from the U.S.-China Business Council released on Wednesday.
'Over 80% of respondents say they invest in China to serve the domestic market, while nearly all report they cannot remain globally competitive without their China operations,' the council said. In spite of headwinds, 82% of companies reported profits in 2024, the council said.
The Washington, D.C.-headquartered council represents more than 270 American companies doing business in China including multinationals such GM, Fedex, McDonald's, Harley-Davidson and Starbucks. The survey was conducted between March and May 2025, and drew from a pool of 130 members companies.
Overall U.S.-China relations continue to rank among companies' top concerns, along with tariffs, which jumped from eighth to second place amid recently renewed trade friction, the council said.
Eighty-eight percent of respondents are affected by U.S.-China relations, compared with 79% last year, and 68% have been impacted by tariffs, the council said.
Among other challenges, U.S. companies doing business in China are losing market share there as the country intensifies its rollout of industrial policies and subsidies designed to help domestic firms, the council said.
'Chinese industrial policies are boosting local competitors as American companies continue to lose market share in China,' the council said. Chinese overcapacity, once mostly confined to industrial sectors, 'has begun to impact wider swaths of the economy, including health care and consumer goods. Insufficient domestic demand and overcapacity remain the top constraints on profitability.'
Back at home, U.S. export controls and investment restrictions vis-à-vis China have also had a negative effect on business there for about 40% of respondents, the council said.
Many of those businesses are 'experiencing lost sales, severed customer relationships, and reputational damage in China to the intensifying perception that U.S. firms are unreliable suppliers,' the council said.
'Fewer than half (of survey participants) are optimistic about the future, reflecting concerns about over tariffs, deflation, and policy uncertainty,' the council said.
Click here for the full report.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump Media Is Now a $2 Billion Bitcoin Bet
Trump Media Is Now a $2 Billion Bitcoin Bet

Gizmodo

timea few seconds ago

  • Gizmodo

Trump Media Is Now a $2 Billion Bitcoin Bet

Trump Media isn't just fighting Big Tech. It's taking on Wall Street with a Bitcoin war chest big enough to rival corporate heavyweights. The company behind Truth Social and streaming platform Truth+ announced, on July 21, it had purchased $2 billion worth of Bitcoin and Bitcoin-related securities, converting two-thirds of its $3 billion in liquid assets into cryptocurrency. It's one of the boldest corporate Bitcoin strategies ever seen, rivaling billionaire Michael Saylor's MicroStrategy (now known as Strategy), the enterprise software company that famously pivoted to become a dominant corporate holder of Bitcoin. Trump Media thus becomes the sixth-largest company holding Bitcoin on its balance sheet, according to (Disclosure: Trump Media sued Gizmodo along with 19 other media outlets in 2023, claiming that they inaccurately reported financial data about the company. That litigation is pending.) Trump Media CEO Devin Nunes framed the move as a bid for 'financial freedom' and protection from 'discrimination by financial institutions,' echoing long-standing grievances in Trump's orbit about Big Tech and Wall Street bias. The company also revealed plans to keep acquiring Bitcoin and Bitcoin-linked options that could be converted to spot Bitcoin holdings. He also hinted at the company's next big step: a 'utility token' set to power Trump Media's planned fintech arm. Donald Trump, who founded Trump Media and remains its namesake, is now president and has positioned the U.S. as the world's most crypto-friendly nation. His administration has pushed policies to roll back SEC crypto enforcement, has championed crypto-friendly policies, and framed Bitcoin as a strategic U.S. asset. At the same time, a company directly linked to his personal brand and political base is heavily invested in Bitcoin. Pro-crypto policies from a Trump administration, such as rolling back regulatory scrutiny or signing the Genius Act, could directly benefit Trump Media's Bitcoin-heavy treasury. To an outside observer, it would be easy to get the impression of policy being shaped to benefit a president's own corporate holdings. President Donald Trump currently owns 114,750,000 shares of Trump Media through the Donald J. Trump Revocable Trust. This represents 41.4% of the outstanding shares of the company. Trump Media's $2 billion bet effectively links its financial health to both Bitcoin prices and Trump-era crypto policy. If Bitcoin rises under a regulatory-friendly environment, Trump Media could see exponential gains. A regulatory crackdown or a crypto crash could devastate it. The risk cuts both ways: Bitcoin's volatility could drain the company's liquidity, threatening the viability of Truth Social and its broader media ecosystem. It also hints at a possible long-term goal: a Trump-linked crypto ecosystem combining Bitcoin reserves with a proprietary utility token, potentially transforming Trump Media into a hybrid of media platform and financial institution. Trump Media started as a megaphone for 'free speech.' Now it's building a Bitcoin bank during a pro-crypto presidency led by its founder. How that shakes out will depend on Bitcoin's trajectory and the scrutiny on Trump's dual roles as president and 'crypto bro.'

Supreme Court Hands Donald Trump 16th Win in a Row
Supreme Court Hands Donald Trump 16th Win in a Row

Newsweek

time2 minutes ago

  • Newsweek

Supreme Court Hands Donald Trump 16th Win in a Row

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Supreme Court on Wednesday delivered another victory to President Donald Trump, allowing his administration to remove three Democratic members of the Consumer Product Safety Commission (CPSC), marking Trump's 16th consecutive win before the high court. The justices granted an emergency request from the Justice Department, which argued that as head of the executive branch, the president has the authority to remove agency commissioners without cause. The three liberal justices dissented, echoing concerns raised by U.S. District Judge Matthew Maddox, who had ruled in June that the dismissals were unlawful. Maddox, a Biden appointee, emphasized the CPSC's role as a semi-independent body tasked with protecting consumers through recalls, litigation, and safety regulations. He had sought to distinguish the commission's duties from those of other federal agencies where the Court has upheld similar firings. This is a breaking news story. Updates to follow.

Why Coca-Cola's New Cane Sugar Line Might Not Be As Good As Mexican Coke
Why Coca-Cola's New Cane Sugar Line Might Not Be As Good As Mexican Coke

Forbes

time2 minutes ago

  • Forbes

Why Coca-Cola's New Cane Sugar Line Might Not Be As Good As Mexican Coke

Photo illustration byA fter President Donald Trump chided Coca-Cola on social media last week over moving to cane sugar for its iconic soda—'It's just better!'—Coca-Cola had denied the news. But, while releasing its second quarter earnings on Tuesday, the $47 billion (annual revenue) company confirmed a cane sugar line is en route and will hit stores this fall. It's a big win for the MAHA movement, as more and more big food holdouts like Kellogg's are relenting to demands from health-concerned consumers. Several people have asked me if I think this new product will be better than the cult-favorite Mexican Coke, which has been made with cane sugar for years and is a rare treat for many when they find it in a U.S. restaurant. I don't think it will be, and here's why: I doubt Coke will launch this new product in glass, as Mexican Coke is sold. Glass simply makes a better beverage, but tariffs are driving up the price of glass. I'd bet that the American cane sugar Coke launches in plastic bottles. But if Coca-Cola did want to go high-end with this launch, it has a pretty glaring opportunity. Coca-Cola has confirmed that the sugar cane will come from America, but has yet to say where it will be sourced. That decision is extremely important. Before discussing Coca-Cola's options, it's crucial to note that sugar cane farming in America has been a nasty business, with a history among the most violent of any crop that started out completely reliant to the global slave trade. Today, there are two U.S. operations that have the capacity to supply a launch of Coca-Cola's scale: a Cargill joint venture with growers in Louisiana called Louisiana Sugar Refining, and Florida Crystal, a Sunshine State grower and processor that's owned by the wealthy Fanjul family. And if Coca-Cola picks Florida Crystal as its supplier, it would create a new supply stream for America's largest certified regenerative organic farm. Many shoppers want to know that their dollars are supporting sustainable farming practices. If Coca-Cola wants to prove it's a leader in sustainability, using its significant corporate might to build such a large supply chain for a certified regenerative key ingredient would be a good place to start. — Chloe Sorvino This is Forbes' Fresh Take newsletter , which every Wednesday brings you the latest on the big ideas changing the future of food. Want to get it in your inbox every week? Sign up here .Coca-Cola said in its earnings release on Tuesday morning it will launch a version of the drink with cane sugar—as is already used in its products in Mexico and some European countries—later this fall. Let's Hang Forbes I'll be interviewing serial entrepreneur Justin Mares in an AMA for Forbes members at 12:00 p.m. ET on Wednesday, July 30. The Kettle & Fire chairman and I will unpack what it takes to build a better-for-you food business in 2025, how Make America Healthy Again is changing the game for the food and beverage industries and the glaring gaps that still exist. We'll talk synthetic additives and food dyes, seed oils, Glyphosate residue and much more. Mares has done the work. He's been on a quest to sell healthier food to some of the most health-obsessed customers on the planet. That has fueled his bone broth brand Kettle & Fire for nearly a decade. And he has since cofounded a startup called Truemed, which helps consumers use their HSA or FSA funds for root-cause chronic disease interventions. Watch and learn all about: Insider strategies on how to formulate better-for-you food and beverages for mass consumption Advice on the top ingredients to cut from your kitchen to stay ahead of the curve Tips on labeling and the certifications that actually resonate with consumers and meet them where they are How to scale a brand built for the MAHA era RSVP here. The Feed Afghan children receive food aid from a local charity during the Islamic holy fasting month of Ramadan in Mazar-i-Sharif on March 2, 2025. ATIF ARYAN/AFP via Getty Images Up In Smoke: As hunger and emergency aid programs have been dismantled for the past five months, the Trump Administration has incinerated about 500 tons of emergency food meant for children in Afghanistan and Pakistan. The Atlantic reports that the provisions have expired and would have been enough to feed 1.5 million children for a week. Secretary of Health and Human Services Robert F. Kennedy Jr., speaks during a news conference at the USDA headquarters building in Washington, D.C., on July 14, 2025. BRENDAN SMIALOWSKI/AFP via Getty Images Only The Best For Mom: The Associated Press investigated Mom's Meals, a brand of meals sent to Medicare and Medicaid enrollees that Robert F. Kennedy Jr. praised as 'one of the solutions making our country healthy again.' And the AP found the taxpayer-funded meals to really be ultra-processed foods. Speaker of the House Mike Johnson speaks to members of the media outside the House Chamber at the U.S. Capitol on July 23, 2025 in Washington, Watch: A small but growing group of Republicans in Congress are pushing back on widespread immigration raids and, as the Wall Street Journal reports, asking for legislation to be carved out that protects undocumented workers in agriculture. It's a major break in party lines, as the lawmakers acknowledge that America's food supply relies on illegal immigration. SUMMERMAXXING Ambrosia Bags In this new series on how to make the most of your summer, in the most Fresh Take kind of way, I'll be sharing tips and recommendations. First up is Ambrosia Bags—which has been a total gamechanger for me and my kitchen. Why I love them: I need my weekly vegetable, fruit and mushroom shares from the neighborhood CSA to last, and these raw flax linen pouches are designed to keep cucumbers and leafy greens crisp and mushrooms plump, while extending the shelf life of the produce inside completely naturally. And the business, owned by a mother-son duo, makes every bag in Southern California. Field Notes CHLOE SORVINO A trio of hot dogs from nearby bakery Elbow Bread: One with kimchi, one with mustard and sauerkraut and one with corn and tomato relish. Thanks for reading the 152nd edition of Forbes Fresh Take! Let me know what you think. Subscribe to Forbes Fresh Take here .

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store