US Firms' Confidence in China Dwindles According to Eric Zheng and AmCham Shanghai

Thursday, 12 September 2024, 01:00

Eric Zheng highlights that the confidence of US firms in China is waning as American Chamber of Commerce survey reveals record investment cuts. Concerns over geopolitical tensions and China's economic slowdown are driving this trend, leading to a shift in focus towards Southeast Asia.
Scmp
US Firms' Confidence in China Dwindles According to Eric Zheng and AmCham Shanghai

Economic Slowdown and Geopolitical Tensions

As evidenced by the annual survey conducted by the American Chamber of Commerce in Shanghai, US firms’ confidence in China has reached alarming lows. The survey indicates that only 66% of respondents reported profitability, a decrease from the previous year. Moreover, only 13% now view China as their top investment destination.

Investment Shifts to Southeast Asia

  • 40% of firms have redirected investments away from China.
  • The US firms face significant challenges from strained US-China relations.
  • All existing investment plans hinge on further market reforms.

As Jeff Yuan from PwC China states, “the large amount of potential investment waiting at the door is a testament to foreign firms’ dedication to this market.”

Policy Improvements and Future Outlook

  1. 56% of respondents would increase investments if given greater market access.
  2. Many firms noted improvements in policies and transparency from the Chinese government.
  3. US firms call for their government to avoid tariffs and instead seek bilateral cooperation.

The overall sentiment in the report suggests that while financial prospects may improve, the necessity for a stable business climate in China remains critical.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe