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.