The American Chamber of Commerce in China (American Chamber) released its annual business environment survey in Beijing on September 9, half of U.S. companies are pessimistic about the impact that U.S.-China relations may have on business in mainland China over the next two years.
The American Chamber of Commerce in China has surveyed the business environment in China for 23 consecutive years, and this Time surveyed 345 U.S. companies in China and found that originally foreign companies were most bullish on China because of the perceived growth in domestic consumption following the expansion of the middle class, but due to the impact of the Epidemic, China’s consumer sector experienced the worst revenue decline in its history in 2020, and the future of mainland China is likely to enter an environment of low economic growth, high Inflation, and high interest rate stagflationary environment.
Meanwhile, about 50% of companies surveyed believe the investment environment in mainland China is improving, but it is worth noting that while optimistic about the outlook, more than 70% of companies do not have plans to expand their investments in 2021, and only a few plan to increase their investments by less than 10%; global business travel disruptions, expatriate employees unable to enter mainland China due to entry restrictions, and uncertainty around business decisions These are some of the most important aspects of business in China that have been affected by the epidemic.
U.S. companies in China believe that they often face unfair competition in the mainland, for example, mainland companies receive financial support from the Chinese Communist government for market access, public procurement, as well as research and development and taxation.
Greg Gilligan, president of the American Chamber of Commerce in Mainland China, emphasized that the companies surveyed want Beijing authorities to clarify when they will fully open their markets to foreign investment.
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