Trade tensions between the US and China have made companies around the world less keen to invest in either country, reports the South China Morning Post citing a report from Allianz Trade. The report found the United States almost twice as unpopular as its rival.

The report, based on an annual survey by the Paris-based international insurance company, said US-China decoupling had not materialized, but investment intention towards China had dropped “significantly” to 24% of survey respondents, down from 53% a year ago. The survey tracked corporate expectations for exports, global trade and supply chains by collecting views from 6,000 companies in 13 markets before and after the US-Israel strikes on Iran in February and March.

Amid an overall decline in outbound investment appetite globally due to heightened geopolitical tensions, the US and China had “suffered the most” from the loss of potential future investment, the survey found, with the number of firms that considering the US an export growth platform dropping to 13%, down from 17% last year.

Hong Kong stocks fell to a nearly three-month low on Wednesday, reports the South China Morning Post. This comes as surging oil prices fuelled bets that rising energy costs would stoke inflation and cripple global growth.

The Hang Seng Index closed 2% lower at 25,249.48, the lowest since December 16. The Hang Seng Tech Index lost 1%. On the mainland, the CSI 300 Index slid 1.1% and the Shanghai Composite Index retreated 1%.

All but 10 stocks on the 88-member Hang Seng Index fell. Alibaba Group dropped 3.6% to HK$129.90 and Tencent shed 0.9% to HK$506. Oil producers also gave up some of their earlier gains spurred by the surge in the fuel price, with PetroChina sliding 3% to HK$10.12 and CNOOC weakening 1.9% to HK$27.08.

The escalating conflict in Iran has disrupted Chinese car shipments to the Middle East, reports Caixin. The situation is paralyzing Chinese business operations in Iran and threatening the viability of the United Arab Emirates (UAE) as a crucial transshipment hub.

A source at a Chinese state-owned automaker told Caixin that his company’s business in Iran has stalled, with the ripple effects already spreading to other markets. A car trader said that many Chinese auto traders use Dubai as a transit point for exports to other markets in the Middle East and West and North Africa, but that hub is now considered unsafe due to the military operations.

The turmoil endangers a vital artery for China’s auto industry, which relies on the UAE to re-export vehicles across the region and beyond, potentially undermining its global shipment growth after a record-breaking year. In 2025, the UAE was the third-largest export destination for Chinese vehicles, trailing Mexico and Russia, according to data compiled by Cui Dongshu, secretary-general of the China Passenger Car Association (CPCA). Shipments of Chinese cars to the UAE doubled year-on-year to 567,000 units last year.

China sharply reduced tariffs on Canadian canola over the weekend, reports Caixin. The moves marks a major de-escalation in bilateral trade tensions following Canadian Prime Minister Mark Carney’s recent visit.

China’s Ministry of Commerce confirmed Saturday that it would impose a 5.9% anti-dumping duty on Canadian canola, effective March 1 and lasting five years. The rate is far below the provisional 75.8% deposit Beijing had required last year after a preliminary ruling found that Canadian exporters were selling at unfairly low prices.

A spokesperson said China has always preferred resolving trade differences through dialogue and had taken into account “reasonable concerns” raised by Ottawa before issuing its final ruling. China also suspended additional discriminatory tariffs on certain Canadian goods from March 1 through December 31.

The US International Trade Commission said on Thursday it would investigate the economic impact of revoking China’s permanent normal trade status over a six-year period, reports Reuters. The move would likely increase tariffs on Chinese imports.

The USITC, which studies trade and competitiveness matters and rules on anti-dumping and anti-subsidy trade cases, said its report would focus on US trade, production and prices in the industries that could be directly and most affected by increasing tariffs on Chinese goods to the higher non-MFN rates.

When he took office in January 2025, President Trump ordered his trade and commerce chiefs to assess legislative proposals to revoke Permanent Normal Trade Relations (PNTR) with China. PNTR was first granted in 2000, allowing China to join the World Trade Organization, a move that catapulted the country into becoming the world’s biggest manufacturer.