US Firms Report Record-Low Profits and Optimism in China Amid Geopolitical Strains

American companies face dwindling confidence and profitability in China due to economic slowdown and heightened US-China tensions.

A record-low 66% of American companies in China reported being profitable in 2023, according to the American Chamber of Commerce in Shanghai.
Only 47% of surveyed US firms are optimistic about their five-year business outlook in China, the lowest in over two decades.
Geopolitical tensions between the US and China are cited as the top challenge for American businesses operating in China.
A record 25% of US companies cut their investments in China in 2023, with many redirecting funds to regions like Southeast Asia.
The European Chamber of Commerce echoed similar sentiments, urging China to implement reforms and boost investor confidence.