Despite growing concerns about the U.S.-China relations and the overall business environment, a recent survey of Chinese enterprises in the U.S. has found that a majority remain bullish on the market long term. The annual survey conducted by the China General Chamber of Commerce in the U.S. revealed that nearly 60% of companies aim to maintain a stable level of investment, with about 30% planning to boost it. This indicates a notable degree of long-term optimism and positive future revenue expectations among Chinese companies operating in the U.S.
The survey, conducted in April and May of this year, polled nearly 100 Chinese companies across various industries. It highlighted that over 60% of the survey respondents noticed a deteriorating business environment in the U.S., reflecting the growing negative sentiment amid rising trade tensions between the two countries. The rate of concern regarding a “stalemate in Sino-US bilateral relations political and cultural relations” also surged to 93%, up from 81% the previous year.
One of the main challenges identified by Chinese enterprises in the U.S. is the “complexity and vagueness” of U.S. regulatory and sanction policies toward Chinese companies, which was cited by more than 65% of the survey respondents. This uncertainty poses a significant obstacle in branding and marketing for these companies. Additionally, the pervasive anti-China sentiment in American public opinion was ranked as the second-largest branding and marketing challenge by 59% of respondents, further complicating their operations in the U.S.
The challenging market environment in the U.S. has had a significant impact on Chinese companies’ profitability levels. Many firms reported a “significant performance downturn” similar to that experienced in 2020 during the height of the coronavirus pandemic. Specifically, there was a notable increase in the number of companies reporting falling revenue, especially those with declines exceeding 20%. This trend signifies the broader impact of the current business environment on the financial performance of Chinese enterprises in the U.S.
Hu Wei, the chairman of CGCC and the president and CEO of Bank of China U.S.A., emphasized the importance of strengthening coordination between companies from both China and the U.S. to reduce trade frictions and policy barriers. He highlighted that, from a longer-term perspective, trade and investments have always been the cornerstone of U.S.-China relations. Despite the various uncertainties and challenges faced by Chinese enterprises in the U.S., China remains the U.S.’ third-largest trading partner and largest importer, underscoring the significance of continued cooperation between the two countries.
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