China is finding new ways to hurt U.S. businesses

As the trade war escalated between the United States and China this spring, American cherry exporters in Washington state unexpectedly found their customs processing slowed at the Chinese border.Unannounced, increased inspections began in late May and in early June. The extra time the inspections took backed up shipments into mainland China, leading to some shipments rotting on the docks and forcing exporters to divert their produce so it could be sold before it spoiled. Data on such disruptions is hard to come by. But more than one in four businesses that responded to a recent U.S.-China Business Council survey said they have been subject to increased scrutiny from Chinese regulators as a result of the increasing trade tensions.Those companies also ranked political risk associated with the U.S.-China relationship as their top challenge for the first time since the survey began 10 years ago.Disparate American goods such as oranges, logs, calf skins and even Lincoln vehicles have encountered heightened customs reviews at Chinese ports this year. Multinational companies already accustomed to the sometimes difficult environment have reported an uptick in the number of hurdles they must jump through in order to do business in the increasingly lucrative market.