FILE - A man with a shopping bag walks out from a ZARA flagship store at a shopping mall in Beijing, on June 21, 2023. American companies operating in China view tensions with Washington over technology, trade and other issues as a major hindrance for their businesses there, according to a survey by the American Chamber of Commerce in Shanghai.
Overall, the survey showed sentiment worsened from last year, when companies were embroiled in disruptions from “zero-COVID” policies that caused parts of entire cities, transport networks and travel to be shut down, sometimes for weeks at a time. Companies face a growing threat from “nimble, innovative local businesses and state-owned enterprises, which have enjoyed stronger support in recent years and whose consolidation has made them increasingly competitive with large multinational corporations," the survey said.
In the 2022 survey, 40% of manufacturers surveyed said China was among their top three investment destinations, while this year that dropped to 26%. The survey results echoed those found by other foreign business groups. Foreign companies are on edge following unexplained raids on two consulting firms and a due diligence firm. The expansion of an anti-spying law and a push for self-reliance in technology also are seen as risks.
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