Despite mounting concerns about U.S.-China relations and the overall economic environment, the majority of Chinese firms surveyed recently in the U.S. said they are still enthusiastic about the market’s long-term prospects.

According to the China General Chamber of Commerce’s annual study, over 60% of businesses want to keep their investment levels steady, while roughly 30% want to increase them.

The majority of respondents had favourable expectations for future revenue, indicating a considerable degree of long-term confidence, according to the CGCC, which also noted that the poll revealed “a commendable sense of optimism, determination, and resilience.”

In April and May of this year, approximately one hundred Chinese enterprises in a variety of industries participated in a survey on their performance and future prospects.

As trade tensions between the two largest economies in the world continue to rise, the survey stated that Chinese companies are still committed to the U.S. market despite growing negative attitude about the general business climate.

More than 60% of poll participants said that the US business environment was getting worse. Concern over a “stalemate in Sino-US bilateral relations political and cultural relations” increased from 81% to 93% in the previous year.

The Biden administration has tightened restrictions on Chinese enterprises over the past year. It has examined key areas where China is a major player, imposed additional penalties on certain Chinese companies and products, and attempted to completely prevent Chinese ownership of specific platforms and companies.

The primary obstacle to branding and marketing in the United States, according to over 65% of respondents, is the “complexity and vagueness” of American regulatory and punitive policies against Chinese enterprises.

59% of respondents named “pervasive anti-China sentiment in American public opinion” as the second biggest branding and marketing issue.

The research stated, “These [results] highlight the complex policy environment and the hostile public sentiment influenced by ongoing US-China trade tensions.”

According to the report, a difficult market climate has generally harmed the profitability levels of Chinese businesses, with a “significant performance downturn” that occurred last year that was comparable to the coronavirus pandemic of 2020.

A greater number of businesses reported declining revenue, especially those that saw notable drops of more than 20%. Businesses in that category increased to 21% in 2023 from 13% in 2022.

Hu Wei, the chairman of the China-U.S. Business Council (CGCC) and the president and CEO of Bank of China U.S.A., urged businesses in China and the U.S. to work together more closely in order to lower trade tensions and policy obstacles.

“Trade and investments, from a longer-term perspective, have always been the cornerstone of the U.S.-China relations,” he stated, noting that China continues to be the United States’ third-biggest trading partner and top importer despite a number of difficulties.

(Adapted from CNBC.com)

Categories: Economy & Finance, Entrepreneurship, Geopolitics, Regulations & Legal, Strategy