U.S. companies, once vocal about the risks of a trade war with China, have largely fallen silent as challenges in the Chinese market grow. During Donald Trump's first term, businesses criticized tariffs, citing higher consumer prices and retaliatory trade actions. As Trump begins his second administration, companies face declining opportunities in China due to its faltering economy and competitive local industries. In 2023, U.S. exports to China fell by 4%, while the U.S. trade deficit with China reached $245 billion for the first 10 months of 2024. Companies have scaled back operations in China, citing increased competition and economic hurdles. Political tensions and U.S. export controls further complicate the business landscape.
