Confidence among U.S. businesses in China is dwindling due to political tensions and a slowing economy
A recent survey by the American Chamber of Commerce (AmCham) in Shanghai revealed that only 52% of surveyed U.S. firms are optimistic about their five-year business outlook in China, marking a record low
This decline in optimism is notable even after the COVID-19 restrictions ended, indicating persistent challenges in the Chinese market
AmCham Shanghai Chairman, Sean Stein, expressed surprise at the low optimism level, suggesting that expectations of a sustained economic rebound post-COVID had waned
U.S.-China tensions are a major concern for businesses, with 60% of respondents in the survey citing them as a top challenge
The survey also highlighted unease about the transparency of China's regulatory environment, with one-third of respondents reporting worsening policies and regulations for foreign companies
The European Union Chamber of Commerce noted that European companies face difficulties in meeting requests from Chinese and Western customers to avoid using Chinese or U.S.-made components or software
China's efforts to restrict access to advanced technology and concerns about fines and raids have strained relations between the two countries
U.S. Commerce Secretary Gina Raimondo stated that U.S. companies have complained that China has become "uninvestible
The survey indicated a growing trend of companies redirecting their investments away from China, with 40% considering or actively moving investments to Southeast Asia