Nearly seven in 10 U.S. businesses expect to buy and sell more goods with China in the next 12 months. More of these stateside companies are also mulling using the yuan to do so, says a survey sponsored by global bank HSBC.
The HSBC study, which explores the attitudes and use of yuan by decision makers at global companies in 14 markets, shows that 65% of U.S. businesses expect their trade with China to increase in the next year, up from 55% in 2014 and higher than the global average of 54%. Only business leaders in the UAE (71%) and Korea (68%) had higher more hopes for increased trade with China.
U.S. exports to China are expected to average 9% a year in the medium term, while imports from China are expected to grow by an annual average of 7% through 2020, according to HSBC trade forecasts.
U.S. businesses considering yuan
More U.S. businesses are exploring using the yuan though not as many as some of their overseas rivals. Close to a fifth of U.S. management teams have had discussions on using the Chinese currency as a potential opportunity or business enabler, in line with their global peers in Australia, Canada, and the U.K, though behind senior management teams in Singapore, Malaysia, Germany and the UAE, where about a quarter of teams have done so, and well behind teams in greater Asia.
Only 10% of U.S. companies said they had used the Chinese currency to settle cross border trade, compared with the global average of 17%.
In fact, 14% of U.S. firms expect the Chinese currency to be a fully internationally traded currency like the dollar or euro in the next five years. Additionally, 35% of Chinese companies said they are using yuan to settle trade up from 33% last year, while 60% of those said they expect the level of their yuan cross-border business to rise in the next 12 months, up from 44% in 2014. Late last year, the yuan also became the fifth most-used currency for global payments, according to data from SWIFT.
The HSBC survey polled more than 1,600 decision-makers from Australia, Brazil, Canada, mainland China, France, Germany, Hong Kong, Malaysia, Singapore, South Korea, Taiwan, the UAE, the U.K. and the U.S. who represent companies that conduct international business with or from China.