Fallout from the deadly COVID-19 is weighing on operations of some US companies in China, with about 10 percent seeing daily losses of 500,000 yuan.
Some US firms worry that the epidemic will cast a new shadow on bilateral trade relations between the world's two largest economies, which have already soured in a relentless trade war which the US initiated in 2018.
About 50 percent of surveyed US companies expect their revenues in China to decline if business does not return to normal before April 30. And, 20 percent of American companies say their losses will mount to more than half of last year's profits, if the epidemic extends through August 30.
Nearly one-third of US enterprises now face increased costs and dented revenues in China. They acknowledged that the most severe challenges come from logistical disruptions and reduced staff productivity.
Amid China's sweeping and decisive measures to combat the virus, about one-third of US firms expected to return to normal business by the end of March. But still, 12 percent said the delay and the loss could extend to the summer.
While uncertainties persist over when the virus will come under control and how long its effect on US companies will last, about 25 percent of American companies surveyed said they won't change their investment plans in China.
Another 50 percent of US firms said it is still too early to determine the impact of COVID-19 on their investments in China. Some are concerned that the new epidemic will further dampen China-US bilateral relations.
Fallout from the deadly COVID-19 is weighing on operations of some US companies in China, with about 10 percent seeing daily losses of 500,000 yuan.
About 50 percent of surveyed US companies expect their revenues in China to decline if business does not return to normal before April 30. And, 20 percent of American companies say their losses will mount to more than half of last year's profits, if the epidemic extends through August 30.
Amid China's sweeping and decisive measures to combat the virus, about one-third of US firms expected to return to normal business by the end of March. But still, 12 percent said the delay and the loss could extend to the summer.
Another 50 percent of US firms said it is still too early to determine the impact of COVID-19 on their investments in China. Some are concerned that the new epidemic will further dampen China-US bilateral relations.
