Business Confidence Among U.S. Companies In China Hits Record Low

On October 28, an annual survey released by the American Chamber of Commerce in Shanghai in conjunction with consulting firm PwC showed that optimism among U.S. companies in Communist China has plummeted to a record low.

Only 55 % of 307 U.S. firms surveyed were optimistic about business prospects over the next five years. It has reached the lowest level in the survey’s 23-year history, and is even worse than when the CCP virus first broke out in 2020 and during the U.S. -China trade war in 2019. In addition, about half of the companies said their headquarters’ confidence in China’s economic management has worsened over the past year; only 18% of companies currently list China as a top global investment plan, down from 27% last year.

The survey also noted that 53 companies are considering leaving the country within one to three years. Respondents cited that competition in China, strained U.S.-China relations, economic slowdown, travel restrictions, and the lockdown related to the CCP virus are their main challenges in the next five years. Moreover, many countries have relaxed the CCP virus restrictions, but China continues its lockdown, mass Nucleic Acid Amplification Test, and quarantine. In addition, Beijing’s policy towards Taiwan, close ties with Russia, and U.S. sanctions enacted to restrict the transfer of semiconductor technology to CCP-linked companies have hit China’s economic growth and caused severe disruption to companies.