Brunswick’s new US-China Trade Tracker explores the business impact of the trade tensions.
Based on the views of 1,000 American consumers and 1,000 Chinese consumers, the findings indicate significant risks:
- 56% of Chinese consumers say they have avoided purchasing an American product to show support for China. This poses a significant bottom line risk to US companies as three in four (77%) Chinese consumers say they often buy products from American businesses.
- Americans have lost confidence that Chinese companies can be trusted to do what is right. In our China Going Global Research (conducted in Q4 2018) a majority of US consumers trusted Chinese companies to do what is right. In our new survey, only 44% of Americans say they trust Chinese companies, a 12-point decrease over the past eight months. This suggests the goal of Chinese companies needs to be mitigating US regulatory and reputational risk. Winning support of US audiences is a difficult proposition in the current environment.
- There is broad support for bilateral trade in both countries. Strong majorities of consumers believe that people in both countries benefit from the exchange of goods between the US and China. Despite the differences, neither side is willing to cut the other off as a trading partner.
- There is optimism that a trade agreement will be made. Nearly all American and Chinese consumers say that addressing bilateral trade is a priority for their country. Few believe a trade agreement will be signed in the next three months, but majorities believe a deal will be reached within the next year.