US Companies Optimistic About China's Economy During the Week... US-China Relations Seen as "Pessimistic"

Weekday US Chamber of Commerce Survey
Increase in Pessimistic Outlook on US-China Relations

While American companies operating in China remain optimistic about the local economy, they have become more pessimistic about relations with the United States compared to the past.

On the 26th, the American Chamber of Commerce in China released the "China Business Environment Survey Report," conducted from the 18th to the 20th of this month, targeting over 1,000 member companies. The Chamber had previously published a related report in early March to assess the post-With-Corona transition situation, and this survey serves as a follow-up.

[Image source=Yonhap News]

According to the report, 59% of responding member companies viewed the growth trend of China's domestic market as "optimistic," a 17 percentage point increase from the March report. The percentage of members expecting improved profitability in China also rose by 4 percentage points to 37%.

Michael Hart, Chairman of the American Chamber of Commerce in China, explained, "Members believe the economic situation has improved," but added, "However, they are watching to see if the recovery trend can continue."

Concerns about US-China relations have deepened. In this survey, the proportion of members describing US-China relations as "pessimistic" surged from 73% in March to 87%.

Among the members, 43% reported that global or regional executives from their headquarters have visited China since December last year, and 31% said they have plans to visit in the future. The Chamber noted, "Whether senior executives from headquarters visit China is a very important indicator for observing the outlook of American companies," and assessed that "at least American companies still consider the Chinese market very important."

The report also emphasized the need for expanded air routes between the two countries and improved visa issuance convenience. Forty-four percent of member companies evaluated international flights as too scarce and expensive. Chairman Hart stressed, "There is too much unrealistic or distorted information in public opinion on both sides," and added, "Direct communication will be more constructive in understanding the actual situation."