It is too risky to commit to a multi-year project or buy a large piece of plant if the economics of the decision can get completely undermined by a policy decision.
The effect of that decision to wait rather than invest is clear in surveys of manufacturing businesses right round the world, which have fallen to low levels over the course of the past twelve months as the dispute has intensified (Graph 1). It is particularly apparent in east Asia, most obviously South Korea, as well as places like Germany.