Companies operating in Asia Pacific change their strategies as they expect the US-China trade war to deteriorate further.
According to a recent survey of 144 respondents by the American Chamber of Commerce in Singapore, one out of two businesses have altered their strategies, with the most common impact to strategy being a delay or canceling of capital flows.
About 90% of these respondents have operations either globally, across the Asia Pacific, or across Southeast Asia, said AmCham.
American-based firms made up 61% of all respondents, and manufacturing businesses had a 22% share.
Firms consider moving away
In addition, companies recognize the need of a more flexible supply chain.
While 37% are considering moving sourcing away from the US, 42% are considering moving sourcing away from China.
A total of 11% respondents are considering exiting China altogether
The majority of respondents are concerned about the US-China trade war (81%), though most firms (78%) also see either a positive or neutral overall business outlook over the next six months.
Respondents expect trade wart to deteriorate
More than 70% of respondents believe the trade war will either deteriorate or continue as-is, while less than one in three believe it will be resolved soon.
South East Asia a better place to do business
More companies—at 48%—believe South East Asia is a more attractive place to do business this year, compared with 39% in last year’s survey.