Reportedly, the world’s biggest chemicals firm wants the trade spat to end soon. Sanjeev Gandhi—Member of the Board of Executive Directors at BASF (German chemicals firm)—told to CNBC, “The biggest problem here is the ambiguity. This is causing difficulties with planning. The uncertainty is also impacting our business negatively.” Trade friction amid the U.S. and China has hampered BASF, which has a huge presence in China, which is the largest chemical market globally. During the China Development Forum in Beijing, Gandhi stated, “The anticipation is that there is a solution found that comes soon. Short term, this would elevate the market sentiment, it will wipe out the uncertainties and optimistically that carries us back to the industry as usual.”
In January, BASF signed a $10 Billion framework deal with the Guangdong administration to construct a chemicals complex in China’s populous province. It would be China’s first completely foreign-owned chemicals network and BASF’s single biggest investment. Reuters stated that the agreement concluded quickly, in part owing to apprehensions that the U.S.-China spat can hamper investment outlooks in Guangdong. That in return prompted administrative officials to be quite open to the BASF agreement, the news agency reported. Gandhi opposed with that evaluation. He asserted that BASF has been there in China for over 134 Years and has spent in excess of $9.06 Billion (8 Billion euros) there in the past decade.
On a similar note, a Swiss watchmaker is caught amid the U.S.-China trade dispute. Ricardo Guadalupe—CEO of Hublot (luxury watch brand)—earlier in this month, stepped in the Las Vegas shop and he did not feel right. He said, “Our boutique was half-empty. We see less number of Chinese traveling to the U.S.” Watchmakers state they are trapped in the midst of the U.S.-China trade spat, not owing to both the countries enforcing tariffs on each other, but owing to the dispute saps expansion prospects in the two biggest markets.