Chinese companies in the US are optimistic

pte20240626003 Company/Economy, Trade/Services

China General Chamber of Commerce – United States: Tense political relations without much influence

A Chinese solar module manufacturing facility in the US (Photo: Langi, pixabay.com)

New York (pte003/06/26/2024/06:10)

The majority of Chinese companies operating in the United States want to maintain or increase their investments there, despite concerns about a growing strain in relations between the two countries. This is a survey China General Chamber of Commerce – United States. Of the nearly 100 companies surveyed, 59 percent believe their new investments in 2024 will be the same as the previous year. Another 29 percent want to increase their investments compared to 2023.

Sales expectations fall

The annual survey examines the experiences and perceptions of Chinese companies in the United States. According to the chamber, the basis is the responses of companies and selected interviews with managers. About 43 percent of those surveyed expect sales to increase in 2024 and 2025. In comparison: in 2023 it was 46 percent. Another 39 percent expect their income to stay the same, compared to 35 percent a year earlier.

Longer-term optimism masks short-term negative sentiment regarding the overall US business and investment climate and US-China relations. Concern about “stagnation in bilateral relations” has risen from 81 percent this year (2023) to 93 percent. Fears of “friction in economic and trade relations” rose from 66 to 86 percent. More than 60 percent of companies surveyed report a poor environment. Profit margins fell last year, which the chamber said was “reminiscent of the early pandemic period of 2020.”

Tips for companies in China

“Encourage communication to achieve better integration and growth using best practices and technological innovations, new AI technologies and US talent,” the chamber recommends to Chinese companies. And: “Align your business operations with the consumer-driven nature of the U.S. economy and create a forward-looking brand identity.”

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