(VOVWORLD) - American companies doing business in China are more pessimistic about the next five years’ business outlook than at any point in the last 25 years, according to a survey by the American Chamber of Commerce (AmCham) in Shanghai.
Only 41% of surveyed firms expressed optimism, AmCham said, citing rising geopolitical uncertainties, fierce competition, and China’s economic slowdown.
254 AmCham Shanghai members responded to the survey, which was released shortly after US President Donald Trump’s announcement of sweeping tariffs on multiple countries, including China.
66% of respondents said they consider US-China tensions the top challenge facing their business over the next 3 to 5 years. Domestic competition from rising Chinese players was the second-biggest challenge cited, overtaking China's economic slowdown.
Only 12% of respondents ranked China as their top investment destination, a record low. 47% of companies have redirected planned investments away from China, with Southeast Asia remaining the top alternative.
However, 71% of respondents said they were profitable in 2024 and 57% saw higher revenue in 2024 than in 2023. 48% of respondents said the regulatory environment in China is transparent, a 13-point jump from last year, and 41% said they are confident in China opening up further.