UBS: China C-Suite Executives Predict US Tariffs
Business sentiments in China have improved compared to late 2024 but remain lukewarm, in part due to the ongoing trade war, according to a UBS survey that includes predictions of US tariffs.
Chinese businessmen expect the US to add tariffs on Chinese goods by an average rate of 26.5 percent, on top of the 20 percent fentanyl tariffs, according to the annual UBS China C-Suite Business Survey. In addition, respondents also expressed concerns about tighter policies against China from other trading partners with anticipation of more negative impact from trade tensions than in previous surveys.
While there is a weaker forecast for future new orders and revenue growth due to the trade war, alongside China’s property downturn, business sentiment was better compared to the September 2024 survey thanks to domestic policy easing and improving growth.
Outlook for AI Adoption
On the more positive side, Chinese executives were optimistic about the adoption of artificial intelligence (AI) with 73 percent having already utilized AI technology and 95 percent believing it has delivered benefits.
«The primary goal of AI deployments is to improve efficiency and product quality, while the most cited challenges are lack of sufficient talent and data privacy issues,» commented Ning Zhang, senior China economist at UBS Global Research. «The survey showed that AI adoption at this stage has not caused significant disruption to China’s labor market and household income.»
The 15th edition of the China C-Suite Business Survey is based on an online survey of 404 senior executives in China conducted from March 18 to April 17. The production of the report is powered by UBS Evidence Lab, a sell-side team of experts that work across numerous specialized labs creating insight-ready datasets.
