Analysis: Trump’s Second Term – American Businesses Will No Longer Speak for the CCP

As President Trump’s second term is about to begin, there is significant attention on US-China relations and trade. According to analysis by American media, the scene of US companies speaking on behalf of the Chinese Communist Party during Trump’s first term will not be repeated in the second term.

The Wall Street Journal reported on January 2 that China’s economy is facing difficulties, and its market appeal has diminished. With Trump preparing for his second term, American companies are no longer emphasizing the importance of US-China relations, as they no longer see China as an opportunity.

During Trump’s first term, US companies argued that initiating a trade war with China would not benefit Americans. Companies including Apple, Nike, and small retailers warned that increasing tariffs on Chinese imports would lead to higher prices for consumers. Farmers and other businesses exporting products to China also cautioned that Beijing would impose retaliatory tariffs.

The current situation is completely different now.

“US companies are more cautious about doing business in China,” said Anja Manuel, Executive Director of the Aspen Security Forum, which provides consulting services to US companies operating overseas. “This applies to all industries.”

The American Chamber of Commerce in China, representing over 800 companies in China (mostly American), stated that member companies have ventured to other countries for new investments.

Due to considerations of growth potential, US companies were able to tolerate various difficulties of doing business in China in the past, including potential intellectual property losses and pressure from state-owned enterprises, but the situation has now changed.

Michael Hart, President of the American Chamber of Commerce in China, stated that US companies operating in China face increasingly fierce competition from Chinese companies benefiting from subsidies or policies of the Chinese Communist government.

The report mentioned companies like Starbucks, IBM, Microsoft, Oracle, and General Motors, all of which are facing challenges due to Chinese government policies and subsidies to Chinese companies.

Kurt Tong, a former US diplomat and current Managing Partner at the business consulting firm The Asia Group, stated that US companies that have invested significant time and capital in doing business in China no longer tend to lobby publicly in Washington to protect their investments in China.

Tong remarked, “If a company goes to Congress or the government and says, ‘Our investment in China creates revenue, jobs, or exports for the United States,’ the counterargument is: ‘But you should be putting that investment in the US.’ The conversation ends there.”