U.S. businesses in China are feeling more optimistic about bilateral relations and their profitability potential than a year ago, but most will still limit new investment in the country for now, a survey published on Thursday showed.
Even so, the U.S-China relationship continues to be their main concern, followed by regulatory inconsistencies, increasing labour costs and data security concerns, the survey by the Beijing-based American Chamber of Commerce (AmCham) in China of its members showed.
"Despite the expansion in bilateral trade in recent years, mistrust between the United States and China remains high, and relations are strained," said AmCham China Chair Sean Stein.
Responses for the survey from 343 AmCham members were collected in October 2023, prior to U.S. President Biden and Chinese President Xi Jinping's meeting in San Francisco, an event that was seen as a significant step toward normalising relations between the world's two biggest economies.
Over 40% of respondents said they had no plans to increase their investment in China in 2024 and another 37% anticipate only a minor increase.
A similar sentiment survey released by the British Chamber of Commerce in China last December found UK businesses were also delaying new investments in China.
One-third of companies surveyed by AmCham said they were treated unfairly compared to Chinese counterparts. Those in the tech sector reported the largest decline in equity, as the U.S. and China continue their battle for high-tech supremacy.
Around half of the AmCham members surveyed now consider China a top three global priority - a slight increase from last year's all-time record low.
More respondents, 39%, report that China is less welcoming to U.S. businesses, while 31% say it is more welcoming, compared to a year ago, reflecting the complex business and geopolitical environment U.S. businesses face in China over the year ahead.
