Just 52% of respondents to a poll by the American Chamber of Commerce in Shanghai said they were at least slightly optimistic about the business outlook in China over the next five years. That’s three percentage points less than in 2022 and the lowest since the chamber began surveying members in 1999.
The country’s top leaders have stressed a commitment to “opening up” and welcoming foreign investment this year. But US-China strains, data security rules, and concern about Chinese actions targeting American and other overseas firms have rattled companies. Uncertainty about ties between Washington and Beijing was cited as the No. 1 reason. Those redirecting investment away from China — or who are planning to — cited Southeast Asia, the US and Mexico as potential destinations.
There were some bright spots. About a third of respondents said they plan to increase investment in China this year, a bit more than said they would last year. China’s market growth potential and the end of Covid curbs were the top reasons.
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