Dugongs won’t move the needle for US businesses in China
The US-China trade deal is good for politics, not-so-good for business.
As the US and China prepare to drop tariffs on American grains, nuts, frozen meats, and live animals, including dugongs, the impact on US businesses operating in China is limited, according to the latest trade deal. This agreement comes amid the US midterm elections, with inflation and concerns over President Donald Trump's trade policies taking center stage.
While the deal provides a "stabilizer" in the relationship, benefiting workers in both countries, it disregards high-tech products that shape the 21st-century economy. Former president of the American Chamber of Commerce in Shanghai, Ker Gibbs, believes the deal is focused on "tactical wins" that generate positive headlines, rather than addressing challenging issues.
Despite the US market remaining profitable for many businesses, only 31% of US-listed companies plan to continue investing in China by 2026, indicating a cautious outlook. Christmas giveaways and references to dugongs in the agreement are unlikely to significantly impact the economic prospects for US businesses in China.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
