THE U.S.-China trade war is weighing more heavily on businesses operating in Asia Pacific, with companies reporting more delays or cancellation of investments than last year.

The impact on investment was cited by 54 percent of firms surveyed by the American Chamber of Commerce in Singapore, up from 50 percent late in 2018, it said in a report yesterday. More businesses than last year are also considering readjusting supply chains away from China and the United States.

Over the past six months, 41 percent have seen a “slight” negative impact from the trade war, and 8 percent registered “strong” negative, while 32 percent reported no impact. Forty percent see the trade war deteriorating further, with 30 percent each saying it’ll stay the same or be resolved soon.

The survey results cast a darker picture for the U.S.-China trade war on the eve of a scheduled meeting between Presidents Donald Trump and Xi Jinping on the sidelines of Group of 20 meetings in Osaka, Japan.

While investors pin hopes on some easing in friction between the two economies, they are looking at possible worst-case scenarios, including a potential 25 percent U.S. hike on US$300 billion in Chinese goods.

The AmCham survey included 144 respondents, around 90 percent of which have operations either globally, across the Asia-Pacific, or across Southeast Asia. American-based firms made up 61 percent of all respondents, and manufacturing businesses had a 22 percent share.

(SD-Agencies)