GP: American flag and Chinese flag
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A recent survey of Chinese companies based in the U.S. found that the majority remain bullish on the market in the long term, despite growing concerns about U.S.-China relations and the overall business environment.
An annual survey conducted by the China General Chamber of Commerce in the United States found that about 60% of companies aim to maintain stable investment levels, while about 30% plan to increase their investment amounts.
“Long-term optimism remained notable, with the majority expressing a positive outlook for future earnings,” the CGCC said, adding that the survey reflected “commendable optimism, determination and resilience.”
The survey was conducted in April and May this year, polling around 100 Chinese companies across a range of industries about their performance and outlook.
Chinese companies continue to focus on the U.S. market despite rising negative sentiment about the overall business environment amid rising trade tensions between the world’s two largest economies, the report said.
More than 60 percent of survey respondents believe the business environment in the United States is worsening, while the percentage who are concerned about a “political or cultural impasse in the bilateral relationship between the United States and China” has soared to 93 percent from 81 percent last year.
Over the past year, the Biden administration has tightened restrictions on Chinese companies, scrutinized specific industries dominated by China, imposed new sanctions on a range of Chinese companies and products, and sought to block Chinese ownership of certain companies and platforms altogether.
In the survey, more than 65 percent of respondents cited the “complexity and ambiguity” of U.S. regulatory and sanctions policies toward Chinese companies as a major challenge in branding and marketing in the United States.
According to 59% of respondents, “widespread anti-China sentiment in the US public” was cited as the second biggest challenge in brand building and marketing.
“these [results] “The report highlights the complex policy environment and hostile public sentiment affected by the ongoing U.S.-China trade tensions,” it said.
The survey said tough market conditions have had a widespread impact on the profitability of Chinese companies, with businesses facing a “significant decline in performance” last year similar to that seen in 2020 amid the coronavirus pandemic.
More companies are reporting declines in revenue, especially larger declines of 20% or more. This category of companies increased from 13% in 2022 to 21% in 2023.
Hu Wei, chairman of CGCC and president and CEO of the Bank of China USA, called on Chinese and US companies to strengthen cooperation to reduce trade frictions and policy barriers.
“From a long-term perspective, trade and investment have always been the cornerstone of U.S.-China relations,” he said, adding that despite various uncertainties, China remains the United States’ third-largest trading partner and largest importer.
