A recent survey conducted by the China Chamber of Commerce in the US has highlighted that 57% of the companies surveyed lack confidence in the opening of the Chinese market.
The American Chamber of Commerce in China released its latest survey report, indicating that US companies investing in China remain cautiously optimistic about the investment environment in 2024.
The “China Business Environment Survey Report 2024” unveiled by the American Chamber of Commerce in China on the 1st of February sheds light on the investment sentiments of American companies in China.
Despite a cautiously optimistic outlook, 57% of companies expressed reservations about the opening of the Chinese market.
According to the report, 50% of respondents ranked China among the top three investment destinations globally, reflecting a cautious yet positive stance.
However, this falls short of the average level of 60% observed in previous years. The lingering tensions between the United States and China continue to influence investment attitudes, with caution being the predominant factor.
In comparison to the 2023 report, where only 45% regarded China as a top investment destination globally, the current report shows a slight improvement, reaching 50%. Despite this, the figure remains below the historical average.
Concerning China’s investment environment, the report indicates that 45% of surveyed companies in the 2023 report believed that the environment had worsened.
However, this dropped to 35% in the 2024 report. Additionally, 28% of respondents noted an improvement in China’s investment environment, marking a 7-percentage point increase from the previous year.
Sean Stein, Chairman of the American Chamber of Commerce in China, acknowledged signs of stabilization and recovery in China’s economy, signaling potential growth. While not anticipating a significant growth rate increase, corporate members report positive indicators of growth in China.
Despite the optimism regarding economic recovery, the survey underscores the persistent lack of confidence among US companies in the opening of the Chinese market.
About 57% of respondents expressed uncertainty or a lack of confidence in China’s further market opening in the next three years.
Furthermore, approximately one-third of respondents highlighted that foreign-funded companies, compared to local Chinese companies, face more unfair treatment.
The technology and R&D industries were notably affected, while consumer companies reported improvements in their treatment.
Ongoing regulatory actions in China across various sectors have contributed to foreign-funded enterprises’ uncertainty and decreased confidence in operating and investing in the country.
The lack of transparency and uncertainty about future regulatory directions have impacted corporate headquarters’ confidence and willingness to invest in China, emphasizing the need for clarity and stability in the regulatory environment.
(Inputs from ANI)
