For a number of years, Americans had a predisposed notion of not buying products which were ‘made in China’. However, in a surprising turn of events this year, Chinese consumers are boycotting products made in the USA with the ever escalating trade dispute between the two countries. A new Brunswick report analyses the impact of the US-China trade dispute and has found that of the 1000 Chinese respondents, 56% said that they avoid purchasing American products to show their support to China in the dispute. American goods are being passed over also, due to the hike in prices (41%), data and privacy concerns (31%) and also quality concerns (12%).
This situation could only go from bad to worse for American businesses if the tariff levying is not immediately stopped. 68% of those surveyed said that they were less likely to purchase American products since the dispute began, and tech companies have borne the most brunt here.
The statistics of negative perceptions of businesses by Chinese consumers stands at 42% for the US, falling above only Japan and South Korea, which rank at 43% and 47% respectively.
In the meanwhile, American trust in Chinese products is also on a decline since Huawei has been banned from the market. Only 41% of Americans look at Chinese companies with favour and 44% of them trust the Chinese to do the right thing. These numbers are much smaller than those surveyed less than a year ago.
Consumers from both countries have expressed concern about the benefit the other country seeks through unfair trade practices, spying and generally being unable to trust them with personal data, and threats to national security. Consumers in both countries are the ones, who after all, stand to lose the most. Price hikes in products from these two superpowers have caused a general uproar in the market. Consumers in the US feel that concluding transfer of technology, maintaining trade secrets and allowing more US exports to China should be addressed, whereas the Chinese consumers feel that securing respect for the sovereignty of the Chinese law, and removing US export controls are more important.
However, common ground is struck when it comes to bilateral trade talks and reaching a trade deal by the end of 2020. Majority of the consumers from both nationalities believe that both the countries stand to benefit from working together and should be promoted on both sides.