Survey shows, trade disputes aside, Chinese companies are committed to U.S. market | Wilnesh News

A Recent Chinese Business Surveys The U.S. survey found that most people remain bullish on the market’s long-term prospects despite growing concerns about U.S.-China relations and the broader business environment.

The annual survey by the China General Chamber of Commerce in the United States found that nearly 60% of companies hope to maintain a stable level of investment, and about 30% plan to increase investment.

“Long-term optimism persists, with a majority expressing positive expectations for future earnings,” the Chamber said, adding that the survey reflected “laudable optimism, determination and resilience.”

The survey, conducted in April and May this year, examined the performance and prospects of nearly 100 Chinese companies in various industries.

The report said that despite rising trade tensions between the world’s two largest economies and growing negative sentiment about the overall business environment, Chinese companies remain committed to exploring the U.S. market.

More than 60% of the respondents believe that the business environment in the United States is deteriorating. At the same time, the proportion of worries about “the political and cultural deadlock in bilateral relations between China and the United States” has soared to 93% from 81% a year ago.

Over the past year, the Biden administration has tightened restrictions on Chinese companies, scrutinizing certain Chinese-dominated industries, imposing new sanctions on a variety of Chinese companies and goods, and trying to block Chinese ownership of certain companies and platforms outright.

In the survey, more than 65% of respondents believed that the “complex and vague” U.S. regulatory and sanctions policies on Chinese companies are the main challenge facing U.S. brands and marketing

Fifty-nine percent of respondents cited “prevalent anti-China sentiment in U.S. public opinion” as the second-biggest brand and marketing challenge.

“These (results) highlight a complex policy environment and hostile public sentiment influenced by ongoing U.S.-China trade tensions,” the report said.

The survey shows that challenging market conditions have widely affected the profitability of Chinese companies, with companies facing a “significant decline in performance” last year similar to those during the 2020 coronavirus pandemic.

An increasing number of companies are reporting revenue declines, especially those with declines of more than 20%. Companies in this category will rise from 13% in 2022 to 21% in 2023.

Hu Wei, President of the China General Chamber of Commerce and President and CEO of Bank of China US Branch, called on Chinese and American companies to strengthen coordination and reduce trade frictions and policy obstacles.

“In the long run, trade and investment have always been the cornerstone of U.S.-China relations.” He added that despite various uncertainties, China remains the United States’ third largest trading partner and largest importer.