Some American businesses in Hong Kong are reconsidering their plans to move supply chains out of China after evaluating the impact of US tariffs, according to AmCham Hong Kong Vice Chair Sally Peng. The shift comes as companies weigh the costs and stability of sourcing from alternative locations against the challenges of maintaining operations in China.

Peng's comments on Bloomberg's The China Show highlight a potential reversal in the trend of decoupling from Chinese manufacturing that gained momentum during the trade tensions. The decision to stay or leave China involves complex calculations about tariff costs, supply chain resilience, and the availability of alternative manufacturing hubs that can match China's scale and efficiency.

This development suggests that despite ongoing trade tensions, China's manufacturing ecosystem remains attractive for many businesses. The reconsideration of supply chain moves indicates that the costs and disruptions of relocation may outweigh the benefits of diversification for some companies.