Survey Report: American companies started leaving China fast … India’s bat from this report! – US Businesses Dismiss China as a Business Opportunity India Take Benefits Tuta
The pace of American companies manufacturing or shifting sourcing from China to other countries is steadily intensifying. Recently, a survey has revealed that in 2024, 30 per cent of American companies consider or started the process from China to manufacturing or supply chain.
Whereas in 2022, 24 percent of American companies were considering diversifying manufacturing or supply chains from China in 2017. The main reason for this change is the growing tension between the US-China and the Kovid epidemic of China has been erosion of the world.
Disillusionment of American companies from China
According to AMCHAM China Report, Kovid has increased the need to diversify the supply chain. India is expected to benefit the most from this new trend. Where on one hand India and South-East Asia are the most popular destinations. At the same time, in 2024, 18 percent of American companies have considered shifting production in the US, in 2023 this figure was 16 percent.
However, 67 percent of the companies decided not to shift the manufacturing. But this is also 10 percent less than 2023. Apart from the increasing tension between the US-China, China’s slow economic growth and real estate crisis also remain a big challenge for companies. More than 60 per cent of the members of Amacham China admitted that the biggest challenge to do business in China is America-China tension.
For these reasons, US companies are leaving China
After this, the growing competition from local Chinese companies has been described as the second biggest challenge. Weak consumer spending after the Economic Sloidown and epidemic in China has also imposed the priority of the investment.
According to the survey, 21 percent of companies no longer consider China a priority for investment. This figure is double from pre-pendent level. However, the survey also revealed that domestic consumption growth in China remains the biggest opportunity for Tech, Industrial and Consumer Business in 2025.
Also, for many service firms, Chinese companies try to expand abroad can be the biggest opportunity. Many companies still consider the Chinese market as a big and important market. That is, whatever the situation, both the challenge and opportunities for American companies are in China.
