Shanghai American Chamber sees stable China-US ties despite midterm results
Shanghai American Chamber of Commerce says China-US relations are stabilising, with member optimism rising. GOP loss in US midterms not expected to affect bilateral ties. Competition in China's domestic market now a bigger concern for US firms than geopolitical uncertainty.
The Shanghai American Chamber of Commerce has said that the loss of the US midterm elections by President Donald Trump's Republican Party is not expected to harm the prospects for building a stable relationship between China and the United States.
Speaking as the China International Import Expo in Shanghai was due to end on 10 November, chamber president Zheng Yi noted that American companies have participated in the expo for all nine editions, reflecting the importance they place on the Chinese market. He acknowledged that China-US relations have experienced fluctuations in recent years, with a trade war erupting last year that severely affected soybean sales. He expressed hope that China would again purchase large quantities of American soybeans.
The US midterm elections saw the Democratic Party take control of both chambers of Congress. Zheng Yi said foreign policy is led by the president, and based on the desire of both heads of state to build stable relations, he believed this would be beneficial for business operations.
According to a chamber survey, member companies' optimism about their business prospects in China over the next five years has risen. US firms in China now see the intense competition of the domestic market as their biggest challenge, rather than uncertainty in the bilateral relationship.
Zheng Yi forecast that the trade imbalance between China and the US would continue in the coming years, which he attributed to structural factors in both economies. He said that as long as the two countries maintain a complementary relationship, it would serve the interests of both.
The Chinese and US leaders are expected to meet again next week on the sidelines of the Asia-Pacific Economic Cooperation leaders' informal meeting in Shenzhen, with trade expected to be a key topic.