From NBCUniversal:

The American Chamber of Commerce in China released an annual survey showing 19% of U.S. companies reported higher earnings margins in China compared to globally in 2023, up from 12% in 2022. While only 39% expected an increase in China revenue, one-third said their China margins were lower than globally. Foreign direct investment in China fell by 8% to 1.13 trillion yuan in 2023, the lowest level in three years. It is clear that U.S. companies remain cautious about investing in China amid slower growth and heightened geopolitical tensions.

A survey by the German Chamber of Commerce in China found that 80% of respondents expected China’s economy to face a downward trajectory and only about 12% of them planned to increase investment in the country. Many saw little market expansion and anticipated slower growth in China. This leads to a large percentage of U.S. companies that either plan to decrease investment or not expand operations in China.

While Chinese authorities have implemented over “60%” of the measures from the 24-point plan to support foreign businesses in the country, U.S. companies are looking for more tangible progress. Certain regulations are making operations more difficult, especially in tech and research and development sectors. The uptick in measures to attract investment are positive, but U.S. companies remain cautious and want to see more improvements in the business environment.



Read more: U.S. companies say it’s harder to be profitable in China: AmCham China