US Business Confidence in China at All-Time Low: Survey

U.S. companies’ confidence in the Chinese market has plummeted to a record low, a survey by the U.S. Chamber of Commerce in Shanghai shows. Factors such as geopolitical tensions and China’s slowing economic growth are affecting investment strategies.
Among the 306 companies surveyed across various industries, 13 percent identified China as their top investment destination, representing a record low for that metric.
The survey, published on Sept. 12, also found that the percentage of U.S. companies that were profitable last year dropped to a record low of 66 percent.
“Increasing geopolitical pressures, particularly in the run-up to the US election amid escalating trade tensions, and China’s economic slowdown are leading firms to ramp up risk management and adjust their investment strategies,” the chamber said in a statement accompanying the report.
In 2023, a record 25 percent of U.S. companies reduced their investment in China, and 20 percent are expected to follow suit this year, the chamber’s report found. The primary reason cited for this trend was concern over China’s slowing growth.
The chamber’s Shanghai branch chairman, Allan Gabor, said in a statement that many businesses are now redirecting investments to other regions, such as Vietnam, Malaysia, and South Asia.
The report was published a day after the European Union Chamber of Commerce in China released its annual report, which echoed similar concerns about the challenges of doing business in China.
While Chinese authorities repeatedly pledged to reform and open up China’s market, the chamber said doubts over Beijing’s commitment are increasing after “more than a decade of largely unfulfilled pledges.”