Report: US Companies in China Most Concerned About Tensions Between Beijing and Washington

American companies operating in China are facing continued concerns over tensions between Beijing and Washington, according to a report by the American Chamber of Commerce in China. The survey highlighted issues such as inconsistent policies, rising labor costs, and data security as top worries for U.S. businesses in China.

Despite Chinese leaders’ claims of welcoming foreign businesses, many American companies still face barriers to free competition in the country. The report noted that the U.S. presidential election in November was a significant factor looming over the future business environment, even after improved relations in 2023 following summit meetings between Chinese leader Xi Jinping and President Joe Biden.

U.S. Treasury Secretary Janet Yellen recently visited Beijing, raising concerns about potential overcapacity in Chinese industries that could impact foreign manufacturers. The report emphasized the importance of high-level exchanges and communication between the two countries to address these issues.

While American companies saw improved profits in China last year, less than half expect to be profitable in 2024. The report recommended that China create transparent and practical economic policies treating domestic and foreign entities equally. It also called for clarity on China’s anti-espionage law to prevent interference with normal business operations.

Overall, the report provided numerous recommendations for both China and the U.S. to improve the business environment and foster better relations. Despite challenges, American companies are not planning to move their supply chains out of China, but their willingness to increase investments in the country is decreasing as its advantages diminish.