AmCham China survey flags tensions and regulatory climate, with a third reducing investment plans for 2024
- Nearly a third of 343 members cited uncertainties in the US-China economic relationship as the primary reason behind their reduced investment plans in 2024
- Tech and R&D sectors are particularly hit amid ‘strained’ US-China relations, according to findings by the American Chamber of Commerce
Despite improved confidence about China’s near-term economic outlook, survey results continue to show US businesses as reluctant to expand investment in the country – deterred by bilateral tensions and regulatory challenges.
Nearly half of polled American firms said they had no plans to expand investments, or were intending to cut investments, in their China operations, according to the results of an American Chamber of Commerce in China (AmCham) survey released on Thursday.
Overtaking the uncertain policy environment that had been dominating concerns last year, nearly a third of 343 surveyed members cited uncertainties in the US-China economic relationship as the primary reason behind their reduced investment plans in 2024, particularly in the tech and research and development sectors, AmCham said.
“Despite the expansion in bilateral trade in recent years, mistrust between the United States and China remains high, and relations are strained,” said AmCham China chairman Sean Stein. “The need for accurate information has never been greater.”
China’s market remains significant for US businesses, with half of polled members viewing it as a top-three global investment destination. And 77 per cent of members across all sectors were not considering relocating manufacturing or sourcing outside of China.
AmCham president Michael Hart pointed out that supply-chain disruptions have become a major reason behind US companies’ investment decisions.
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