US companies see record-low profits in China amid geopolitical tensions and slow growth, report says

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A report by the American Chamber of Commerce in Shanghai has found that U.S. companies in China are seeing record-low profits, with business confidence at an all-time low amid U.S.-China tensions and a slowing Chinese economy.

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“It’s a balance between risk and reward,” said Eric Zheng, president of AmCham Shanghai, during a news conference ahead of the report’s publication. A record high of 25% of companies polled cut investment in China in 2023, AmCham’s report found, largely driven by concerns over China’s slowing growth. “We are concerned about there being a tipping point now, and therefore we have a call for action to the Chinese government to turn the tide,” said Jens Eskelund, the European Chamber’s president, at a news conference on Wednesday.

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