Business groups are divided as China seeks self-reliance.

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China’s pressure for self-sufficiency in a wide range of sectors is dividing foreign companies, with some welcoming it as another chance to invest there while others fear it could pose risks to the country’s trading partners and to its own economy.

Two influential groups of foreign companies in China released very different reports on Thursday. They revealed a stark rift over whether international companies are supporting China’s pressure to replace imports with an autonomous focus on domestic production.

China heavily subsidizes its manufacturers of semiconductors, commercial aircraft, electric cars and other products as part of a national effort to achieve greater autonomy. The European Union Chamber of Commerce in China said in its report Thursday that these policies are discouraging foreign investment in China. They are also forcing China to spend heavily on developing its own versions of products that are made more efficiently elsewhere, the group said.

“There are disturbing signs that China is increasingly turning in on itself, as can be seen in its 14th five-year plan,” the report said, referring to an economic plan the government released this year. . “This trend casts considerable doubt on the country’s future growth path.”

The Trump administration has sharply criticized China’s emphasis on replacing imports with domestic production, a consequence of the country’s recent “Made in China 2025” manufacturing policy. But American companies established in China are, on the contrary, more favorable to Beijing’s policy.

A separate investigative report released by the US Chamber of Commerce in Shanghai found that a third of chamber members believe China’s self-sufficiency strategy will help their incomes. Almost none thought they would be hurt. Others saw little effect or said it was too early to know.

US companies supporting the strategy estimated that factories and other businesses they own in China would show higher sales to Chinese customers. They are much less worried about hurting their exports from the United States, which are often small. None of the American companies interviewed had any plans to move their operations to the United States, despite efforts by the Trump and Biden administrations to encourage investment in their country.

Ker Gibbs, president of the American Chamber of Commerce in Shanghai, said he was surprised by the opinions of members of his own chamber. More than European companies, he said, US companies tend to focus primarily on next quarter financial results, which are generally best served by staying in China.

“It gives them a short-term focus that serves them poorly when looking at a market like China,” Gibbs said. “They are right to focus on growth and market opportunities, but China’s pressure for self-sufficiency could limit opportunities in the long run.”

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