US firms doing business in China mostly oppose tariffs, survey shows

US President Donald Trump holds his signed memorandum on intellectual property tariffs on high-tech goods from China on March 22. Trump has accused China of unfair trade practices that give its firms an advantage, while hobbling American companies and creating an outsized trade deficit for the US. (Reuters)
Updated 12 July 2018
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US firms doing business in China mostly oppose tariffs, survey shows

  • President Donald Trump has accused China of unfair trade practices that give its firms an advantage, while hobbling American companies and creating an outsized trade deficit for the US
  • The biggest operational challenge of all was rising costs, an issue confronting more than 95 percent of respondents, the poll showed

SHANGHAI: Most US businesses operating in China oppose the use of tariffs in retaliation for the challenges they face, from an uneven playing field to poor protection of intellectual property rights, a survey showed on Thursday.
Almost 69 percent of the 434 respondents to the annual China Business Climate Survey of the American Chamber of Commerce in Shanghai opposed tariffs, while just 8.5 percent backed them, the body said.
“Resolving these challenges in an equitable manner is essential for the US and China to have a healthy long-term commercial relationship that brings benefits to both our peoples,” it said in a statement on the survey results.
The survey, conducted between April 10 and May 10, reflects the mix of key concerns and realities for American businesses in China at a time of heightened uncertainty as the Trump administration raises the ante in its trade war with Beijing.
US President Donald Trump has accused China of unfair trade practices that give its firms an advantage, while hobbling American companies and creating an outsized trade deficit for the US.
On Tuesday, the office of the US Trade Representative said it would impose 10 percent tariffs on an extra $200 billion worth of Chinese imports, from food products to tobacco, chemicals, coal, steel and aluminum.
The survey showed that while US companies continue to face challenges in China, 34 percent of respondents felt Chinese government policies toward foreign companies had improved, up from 28 percent last year.
The number of companies that felt policies had worsened for foreign firms fell to 23 percent from 33 percent, although 60 percent of respondents felt China’s regulatory environment lacked transparency, on par with last year.
Insufficient intellectual property rights protection and the need to get licenses were the top two regulatory challenges, although slightly fewer companies found both to be a hindrance in the 2018 poll, compared with that of 2017.
To force greater market access, 42 percent of respondents favored investment reciprocity, up from 40 percent last year. But the number opposing it also grew, to 16 percent, from 9 percent last year. The number of those unsure rose to 44 percent from 31 percent.
“Despite the relative optimism our members feel guarded about the future,” AmCham said in its statement.
Concerns such as government favoritism for domestic firms and pressure on US ones in strategically important sectors to transfer technology were “stoking demand for reciprocity in the US-China trading relationship, even if our members generally oppose the use of retaliatory trade tariffs,” it added.
The biggest operational challenge of all was rising costs, an issue confronting more than 95 percent of respondents, the poll showed. More than 85 percent of respondents saw domestic competition as a challenge.
The proportion of companies expecting to be profitable was basically flat, at about 77 percent, but firms signaled they were pulling back slightly on investment.
The survey showed 53 percent of companies increased investment in 2017, down from 55 percent the year before, highlighting a trend of reduced investment growth since a 2012 peak, when 74 percent of respondents said they had boosted investment in China.


Aston Martin unveils ‘sports car for the skies’ at Farnborough Airshow

Updated 1 min 41 sec ago
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Aston Martin unveils ‘sports car for the skies’ at Farnborough Airshow

  • The Volante Vision Concept design has vertical take-off and landing (VTOL) capabilities and will be able to hit speeds of around 200mph
  • Aston Martin believes it could corner the market for luxury flying vehicles in the future

FARNBOROUGH: James Bond would love it. Aston Martin, maker of the luxury sports cars favored by the fictional British spy, has now come up with a futuristic personal aircraft it has dubbed “a sports car for the skies.”
Aston Martin unveiled the three-seater hybrid-electric vehicle this week at the Farnborough Airshow and, though the concept remains for now the stuff of science fiction, believes it could help one day to revolutionize travel.
The Volante Vision Concept design has vertical take-off and landing (VTOL) capabilities and will be able to hit speeds of around 200 miles per hour (322 kph), “so you can go from the center of Birmingham to the center of London in about 30 minutes,” Aston Martin’s Simon Sproule told Reuters.
Aviation and technology leaders are working to make electric-powered flying taxis a reality, including Airbus, US ride-sharing firm Uber and a range of start-ups including one backed by Google co-founder Larry Page, called Kitty Hawk.
Aston Martin believes it could corner the market for luxury flying vehicles in the future.
“The same way that you have Uber and you have an Aston Martin, you’ll have ‘Uber in the skies’ and you’ll have ‘Aston Martin in the skies’,” said Sproule, adding that such an aircraft won’t come cheap.
“This is clearly a luxury object — it’s a sports car for the skies — so pricing is going to be commensurate with that, so certainly into the seven figures.”

“FEELS LIKE A FIGHTER JET”
The company has partnered with Cranfield University, Cranfield Aerospace Solutions and British jet engine maker Rolls-Royce to develop the concept vehicle, including artificial intelligence-powered autonomous capabilities.
“It feels like a fighter jet but at the same time it has the Aston Martin luxury,” said David Debney, chief of future aircraft concepts at Rolls-Royce.
Commenting on how to pilot the vehicle, Cranfield’s Helen Atkinson said: “You’ve got to detect what’s going on in the external environment and then turn that around incredibly quickly in the computer system with the artificial intelligence built in to actually achieve the necessary level of autonomy.”
Separately at Farnborough, Rolls-Royce unveiled plans for a flying taxi — an electric vertical take-off and landing (EVTOL) vehicle which could carry four to five people at speeds of up to 250 miles (400 km) per hour for approximately 500 miles.
The company said it was starting a search for partners to help develop a project it hopes could take to the skies as soon as early next decade.