U.S.-China Tensions Hurt Foreign Firms’ Confidence, Chamber Survey Shows
Listen to the full version
Optimism and confidence among foreign companies operating in China fell last year amid headwinds including growing tensions with the U.S., intensifying competition, and rising labor and operating costs, a report published Wednesday by the American Chamber of Commerce in South China showed.
Even so, 91% of the 316 companies that took part in the chamber’s survey said they would not decouple from the Chinese market as a result of U.S. trade tensions, up from 86% in 2023, and 76% plan to reinvest in China this year, according to the annual Special Report on the State of Business in South China.
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- DIGEST HUB
Digest Hub
Back
- Despite growing U.S.-China tensions and increased costs, 91% of foreign companies in China choose not to decouple, with 76% planning reinvestment.
- 73% reported positive investment returns in China, but returns relative to global performance dropped, with a notable 30% decline in the consumption products sector.
- Trade tensions remain worrisome, with a decrease in U.S.-China relationship optimism to 25%; U.S. tariffs affect 54% of businesses, though the belief in continued trade negotiations persists.
- American Chamber of Commerce in South China
- The American Chamber of Commerce in South China conducted a survey in the fourth quarter of 2024, focusing on foreign companies operating in China. The report highlighted issues such as U.S.-China trade tensions, rising costs, and waning domestic consumption, yet showed that China remains a key investment destination. Despite declining confidence, 91% of surveyed companies won't decouple from China, and 76% plan to reinvest. The chamber's president, Harley Seyedin, emphasizes ongoing U.S.-China collaboration.
- January：
- Since Trump took office, he has imposed or threatened to impose additional import tariffs on a host of countries, including China, Mexico, and Canada.
- In the lead up to and after the election：
- The survey took place that confirmed Trump's return to the White House, and the proportion of respondents optimistic about U.S.-China relations in the coming year slumped to 25%.
- Fourth quarter of 2024：
- The chamber surveyed American, Chinese, and other foreign companies with established operations in China.
- By 2025：
- 76% plan to reinvest in China.
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新