Key facts
- US business confidence in China has rebounded from record lows.
- 58% of US companies surveyed are optimistic about their five-year outlook.
- 78% of respondents reported profitable China operations last year.
- Domestic competition is the top challenge for 68% of respondents.
- 55% of companies view China's regulatory environment as transparent.
- 28% of respondents increased investment in China in 2025.
U.S. companies in China have grown more optimistic about their business prospects, with 58% of respondents expecting a positive five-year outlook, according to an annual survey by the American Chamber of Commerce in Shanghai (AmCham Shanghai). This marks a 17 percentage point increase from the previous year and ends a four-year period of historically low confidence.
The improved sentiment is attributed to a stabilization of relations between Washington and Beijing following a trade truce late last year, which paused escalating tariffs. Companies are also anticipating further signs of improving ties ahead of an expected visit by Chinese President Xi Jinping to Washington. Jeffrey Lehman, chairman of AmCham Shanghai, noted that the agreement between the two countries' leaders to work towards a constructive relationship was reassuring to members.
Stronger financial performance also contributed to the optimism, with 78% of the 262 surveyed companies reporting profitability in their China operations last year, the highest level since 2019. However, domestic competition surpassed U.S.-China tensions as the primary challenge, cited by 68% of respondents. The survey also indicated a slight increase in the perception of China's regulatory environment as transparent, with 55% viewing it favorably, though the proportion expecting further openness fell slightly.
Discussion