Trump upsets the apple cart for US firms in China

Trump’s hard line on China has American companies which have invested billions there sweating. As Eve Johnson reports, life could get very uncomfortable for them if Trump angers the Chinese people and this may be precisely the president-elect’s strategy.

(BVO) – Donald Trump’s new hardline on Beijing might have some conservatives cheering

But for US firms that have spent billions investing in China….

From his controversial phone call with Taiwan’s leader to a string of anti-China tweets…

Trump’s tactics signal rocky times ahead between Washington and Beijing.


“Part of his big plan is that the US is open for business and he’s making moves to make it more attractive for companies overseas to repatriate to the states or set up production And manufacturing in the states so I mean Trump doesn’t look like he’s that concerned politically about the fallout for American firms.”

US firms are nervous that if Trump riles Chinese citizens…

by cosying up to Taiwan, for example….

…they could take it out on American businesses….by boycotting or even attacking them.

The way mobs attacked Japanese companies in 2012.

Analysts say this is a nightmare scenario for companies like McDonald’s, Ford, and Apple…

all with big investments in China.

But there may be an upside for sectors that Beijing tightly controls…

like pharmaceuticals, software, or financial services.


“I did speak with one investment banker – American investment banker – who did feel that this that finally this was reopening the door for playing hardball with Chinese negotiators.”

Trump might believe that the more US firms get squeezed… the faster they’ll get back to the US

But analysts say that in China it’s not that simple…

and that Beijing could fight their exit every step of the way.