OUT NOW | 2024 China Business Climate Survey Report

Improved Financials and Business Outlook for US Companies in China Tempered by Investment Hesitation and Bilateral Tensions

•  Companies bounced back after the pandemic, expressing cautious optimism about the near-term outlook. 

•  However, one-third feel less welcome, with US-China tensions and regulatory issues among several highlighted challenges.

American companies in China are facing a complex outlook for the year ahead, as revealed today by the latest survey of members from the American Chamber of Commerce in China ("AmCham China"). While financial numbers have rebounded following the end of pandemic restrictions, a cautious approach prevails. Nearly half of the member companies forecast profitability, but many are opting to limit investments, focusing instead on nurturing their core business. This strategy is shaped by several challenges, headed by tensions in the US-China relationship.

China's market remains significant, with half of members viewing it as a top three global investment destination, a 5pp rebound from last year's record low. Yet over one-third feel less welcome, voicing concerns about market openness and unequal treatment. Persistent business challenges include US-China relations, regulatory inconsistencies, and rising costs. Elsewhere, talent retention has seen improvement, albeit still affected by bilateral tensions, while 80% of members are implementing ESG practices in their China operations, with a focus on DEI, employee training, and business ethics. 

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“Despite the expansion in bilateral trade in recent years, mistrust between the United States and China remains high, and relations are strained. The need for accurate information has never been greater. The Chamber's 26th annual China Business Climate Survey (BCS) Report meets this need by providing accurate, detailed information about the key issues and challenges affecting US business in China. We hope it will inform policies on both sides of the Pacific and contribute to constructive, sustainable, and mutually beneficial relations between the two countries.”

- AmCham China Chair Sean Stein

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Around half of AmCham China's member companies provided data for this year's BCS. The bulk of the data was collected in November 2023, shortly ahead of the bilateral meeting in San Francisco.

The survey also found:

•   Nearly all respondents view US-China relations as crucial to their businesses. Around 30% expect US-China relations to improve in 2024, up significantly year-on-year.

•   Despite improvements from last year, a majority (57%) of companies lack confidence that China will further open its markets to foreign firms. 

•   77% say they are not planning to relocate manufacturing or sourcing operations outside of China. However, there is a small, but noticeable, increase in the number of members considering this option compared to previous years.

•   Consistent with last year, 72% of respondents report at least some pressure to make (or not make) statements around politically sensitive issues, with the Chinese government highlighted as the top source of pressure.

•   Member companies say they hope the two governments can moderate their rhetoric and pursue effective, high-level dialogue, and urge the Chinese government to treat US businesses fairly and engage more effectively with the foreign business community.

For more information, please contact:

Mark Dreyer, Marketing & Communications Director, AmCham China

[e-mail]

Download the 2024 China Business Climate Survey Report

• For members: You should have received an email with the link to download. If you have any questions about the BCS report, please contact the Government Affairs and Policy team at [e-mail]

• For non-members: Scan the QR code below to download the 2024 China Business Climate Survey Report. 

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