Businesses Say Export Controls, Licensing Issues Plague US-China Trade
Members responding to the American Chamber of Commerce in China's 2026 business survey cited slower customs clearances, export licenses and related approvals, and import and export controls as the non-tariff barriers they have most frequently faced over the past year, and more than half said their "operational and investment decisions" have been "significantly impacted" by export controls.
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The survey, which saw responses from more than 360 companies across 20 different industries between Oct. 22 and Nov. 20, shows that most businesses continue to try to navigate "ongoing geopolitical uncertainty" stemming from the U.S.-China relationship, the chamber said.
The survey specifically shows that about 60% of companies affected by export controls have applied for licenses or tried to use exemptions, and about half of those said they have obtained licenses. Of companies that have obtained licenses, about half said their applications had been under review "for a substantial amount of time." The survey results don't specify what percentage of those licenses were sought from the U.S. government versus China.
Members also said many of the trade restrictions they're facing are surrounding rare-earth-related products, advanced semiconductors and electronics. A rise in export controls has resulted in greater compliance costs for 65% of the survey respondents, while 38% said they're planning to shift their supply chains to avoid the controls, and 27% said they're expecting to see higher production costs. About 15% said they're planning to "further localize in the Chinese market."
Nearly one-fifth of respondents said they hope continued U.S.-China trade talks lead to narrower export controls. Companies also said they expect the U.S. in the coming year to "refrain from engaging in aggressive rhetoric and actions" against China to try to stabilize the relationship, including by potentially lowering tariffs and taking other steps to foster a "more predictable and favorable business environment."