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A recent study of Chinese companies in the US found that the majority remain optimistic about the market in the long term despite growing concerns about US-China relations and the broader business environment.
The annual survey conducted by the Chinese General Chamber of Commerce in the United States finds that nearly 60% of companies aim to maintain a stable level of investment and about 30% plan to boost it.
“A notable degree of long-term optimism persisted, with a majority expressing positive expectations about future revenues,” CGCC said, adding that the survey reflected a “commendable sense of optimism, determination and resilience.”
The survey was conducted in April and May this year, polling nearly 100 Chinese companies in various industries about performance and prospects.
The report said that Chinese companies remain committed to the US market despite increasing negative sentiment about the overall business environment amid escalating trade tensions between the world's two largest economies.
More than 60% of survey participants saw a deterioration in the business environment in the United States. Meanwhile, the rate of concern about “the stalemate in bilateral political and cultural relations between China and the United States” rose to 93% from 81% the previous year.
Over the past year, the Biden administration has intensified restrictions on Chinese companies, scrutinized some Chinese-dominated industries, imposed new sanctions on several Chinese companies and goods and attempted to completely block Chinese ownership of certain companies and platforms.
In the survey, more than 65% of respondents identified the “complexity and ambiguity” of U.S. regulatory and sanctions policies toward Chinese companies as the main challenge to branding and marketing in the United States.
“Widespread anti-China sentiment in the American public” was ranked as the second biggest branding and marketing challenge, according to 59% of respondents.
“These (findings) highlight the complex political environment and hostile public sentiment affected by ongoing trade tensions between the United States and China,” the report said.
The survey said that the challenging market environment widely affected the profitability levels of Chinese companies, as companies faced a “significant decline in performance” last year similar to what happened in 2020 during the new coronavirus pandemic.
More companies reported a decline in their revenues, especially those that experienced significant declines of more than 20%. The revenues of companies in this category increased from 13% in 2022 to 21% in 2023.
Hu Wei, Chairman of CGCC and President and CEO of Bank of China USA, called on companies from both China and the United States to strengthen coordination to reduce trade frictions and political barriers.
“From a long-term perspective, trade and investment have always been the cornerstone of US-China relations,” he said, adding that despite various uncertainties, China remains the third-largest trading partner and largest importer of the United States.
