Due to the situation of geopolitical tensions and economic slowdown, it has affected external emotions, and American companies in China in the next few years have the most pessimistic prospects for business in China for decades.
Bloomberg News reported on Tuesday (September 19) quoted the Shanghai American Chamber of Commerce's investigation report that 52%of the interviewed companies said that they were at least optimistic about the prospects of China's business in the next five years.This was three percentage points lower than the 2022 survey, the lowest level since the Chamber of Commerce launched a member survey in 1999.
The Shanghai American Chamber of Commerce wrote in a survey report on Tuesday, "Personal concerns about geopolitics, Sino -US relations, and poor Chinese economy constitute a pressure on expectations."The report added that compared with the situation during the US -China trade war in 2019, more companies said that the prospects were a bit pessimistic or worse in this survey.
The Shanghai American Chamber of Commerce investigated more than 300 respondents in June. The results showed that even if China canceled the prevention and control measures of the epidemic, American companies' confidence in China was still disturbing.
Some foreign executives have issued long -term promised fatigue warnings, which originated from the outside world that the Chinese government will introduce meaningful policy support.
US -China relations have always been a pain point for American companies.Nearly one -fifth of the respondents said that they are considering removing some existing businesses out of China in the next few years.
The uncertainty of US -China relations is considered to be the primary cause of foreign -funded business out of China.Those companies that transfer investment from China or are planning to transfer to Southeast Asia, the United States, and Mexico are potential destinations of transfer.
Weak profits may also make it more difficult for enterprises to accept large -scale investment in the Chinese market in the context of facing geopolitical risks and regulatory obstacles.Due to a long and large -scale epidemic prevention and control measures, the company's operations were hindered. Only 68%of the interviewed companies said that they had achieved profit in 2022, a new low proportion.
Even after re -opening in China, the expectations of future profitability in Huamei Enterprises are relatively sluggish.Only 40%of the interviewed companies are expected to surpass global growth in the next three to five years.
The report also mentions some highlights.About one -third of the interviewed companies said they planned to increase investment in China this year, a slightly more proportion than last year.The growth potential of the Chinese market and the cancellation of epidemic prevention and control are the main reasons for these companies to increase investment.
The American Chamber of Commerce in Shanghai said that some of the recent measures of the Chinese government are also conducive to foreign companies.These measures include extended preferential tax policies for foreigners, as well as 24 plans to attract foreign investment.
