U.S. Business Concerns in China

By Casey Hall
SHANGHAI (Reuters) – More than half of the American businesses in China, the highest level in five years, express concerns regarding a further deterioration in the U.S.-China relationship, according to a survey published on Thursday.

The annual survey by the American Chamber of Commerce (AmCham) in China revealed that 51% of respondents were worried about the future of the U.S.-China relationship.

This survey was released shortly after U.S. President Donald Trump began his second term, with warnings about increasing trade tariffs on Chinese imports.

“A stable and constructive relationship, grounded in economic and trade ties, is critical not only for the prosperity of our two nations but also for global economic stability,” commented AmCham China Chair Alvin Liu.

The primary concerns for U.S. businesses stem from geopolitical tensions, policy uncertainties, and ongoing trade disputes, AmCham China noted.

Conducted between October and November of the previous year, the survey included responses from 368 AmCham China member companies, partly reflecting sentiments after Trump’s election win on November 5.

Trump’s first term saw the onset of a U.S.-China trade war and a decline in diplomatic goodwill, a trend that did not significantly improve under President Joe Biden.

Recently, Trump announced discussions regarding a 10% punitive duty on Chinese imports starting February 1, targeting China’s involvement in the global fentanyl supply chain.

Nearly half of the survey participants still regard China as a top-three global investment priority, maintaining levels from the previous year. However, the percentage of businesses no longer considering China as a preferred investment destination has more than doubled to 21%, compared to pre-pandemic levels, and increased three percentage points from last year’s survey.

Lastly, the proportion of firms reporting unfair treatment in China, particularly regarding market access and public procurement, remains about one-third of the respondents, similar to last year.