China Business Climate Survey Report released by AmCham China, reveals that 58% of US companies in China will achieve revenue growth in 2021; China remains one of the top three investment destinations for 60% of companies in their recent global investment plans; 66% of companies plan to increase investment in China this year; 83% of companies There are no plans to move manufacturing or sourcing out of China.
U.S. companies remain optimistic about the Chinese market, but geopolitical tensions have become a business risk for many international companies, the survey found. More than 40 percent of U.S. companies in China said they were pressured to speak out or refrain from speaking out on politically sensitive issues, especially consumer companies.
The 24th annual Business Climate Survey (BCS) Report found that China remains a top global priority for many members but most are not planning significant investments in 2022.
In 2021, US companies in China reported a mixed picture, balancing slightly improved business performance last year with growing uncertainty about the future of China’s business environment. While 2021 revenue and profitability rebounded compared to 2020, they have yet to return to pre-pandemic levels. Our member companies continue to be optimistic about their opportunities in China, but multiple challenges – including sustained air travel disruptions, an increasingly uncertain regulatory environment, difficulty attracting and retaining talent, and the strained US-China relationship – have seen the level of optimism decline.
This is the 24th consecutive year that AmCham China has surveyed its members on China’s business climate, with the results providing invaluable insight into the longer-term trajectory of China’s corporate environment. The BCS results represent around half of the Chamber’s member companies and highlight the impact of COVID-19, regulatory developments, and US-China tensions on member companies.
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