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Business optimism ‘at record low’ for US firms in China

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The AmCham survey reveals that up to 40% are exploring redirecting investment to Southeast Asia.

Geopolitics remained a major concern for many firms, with US-China tensions cited as a top business challenge.

This was the lowest level of optimism reported since the AmCham Shanghai Annual China Business Report was first introduced in 1999. Concern over the transparency of China’s regulatory environment also grew, with one third reporting that policies and regulations towards foreign companies had worsened in the past year, though many respondents pointed to US government policy rather than China’s when asked about pressure to decouple.

Geopolitical tensions were also cited as the top risk to China’s future economic growth in the AmCham report, with improved US-China relations the number one factor respondents said would improve their industry’s prospects in China.

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