Optimistic U.S. Companies

Confidence within the U.S. business community toward China’s economy is strengthening, despite concerns about the regulatory environment, according to a survey released on January 30.

The survey, conducted by the American Chamber of Commerce in China (AmCham-China) in partnership with Bain & Company, also showed increasing optimism in China-U.S. relations despite the possibility of the Trump administration’s action against Chinese trade and investment practices.

Some 36 percent of respondents believe relations between the two countries will improve this year, compared with 17 percent last year.

“Regarding the economy, there is cautious optimism that the new normal rate of growth is sustainable for the foreseeable future, providing opportunities for business to expand,” said William Zarit, Chairman of AmCham-China.

Some 64 percent of member companies reported revenue growth in 2017, up from 58 percent in 2016 and 55 percent in 2015.

Nearly six in 10 companies rank China among their top three investment priorities, up from the previous year but still below the historical average.

The survey also found one third of members plan to expand their investment in China by more than 10 percent in 2018, and 67 percent of consumer companies see China as either leading in digital technology for their field or more advanced than other markets.

Nevertheless, regulation remains a concern for many. Respondents cited inconsistent regulatory interpretation and unclear laws and enforcement as the top challenges to doing business in China.

The survey was conducted between October 23 and November 26, 2017, and was sent to 849 member company representatives, of whom 411 completed a significant portion.

China’s economy expanded 6.9 percent in 2017, with the pace of growth accelerating for the first time in seven years.