MNI BRIEF: U.S. Firms In China Not Planning Home Production

The majority of U.S. firms operating in China are focused on localising operations or shifting some production to third countries rather than exiting the country, a recent flash survey of 112 firms by the American Chamber of Commerce in China published on Friday showed, with zero respondents reporting plans to shift output back to the US.

The potential impact of rare-earth export restrictions was severe, with 75% of effected members stating stocks would run out within three months. 

However, the chamber cautioned that although rare earths attracted significant news and policymaker attention, they only affected a niche group of respondents.

China is stepping up efforts to internationalise the yuan as global confidence in the U.S. dollar stumbles, advisors and economists told MNI. (See MNI: Beijing Pushes Yuan's Global Role)