Simmering tensions between Beijing and Washington continue to top the list of worries for American companies operating in China, according to a report released Tuesday by the American Chamber of Commerce in China.
The survey of U.S. companies identified inconsistent and unclear policies and enforcement, rising labor costs, and data security issues as additional major concerns. It also noted that many companies still face obstacles to free competition, despite assurances from Chinese leaders that Beijing welcomes foreign businesses.
“The Chinese government has stated that it encourages foreign direct investment, but many of our members continue to encounter barriers to investment and operations, including policies that discriminate against them and public relations campaigns that create suspicion of foreigners,” the report said.
The report acknowledged an improvement in relations in 2023, marked by summit meetings between Chinese leader Xi Jinping and President Joe Biden. However, it cautioned that the U.S. presidential election in November “looms large” over the future business environment.
More recently, U.S. Treasury Secretary Janet Yellen visited Beijing, expressing concerns that potential overcapacity in Chinese industries, such as electric vehicles, steel making, and solar panels, could crowd out U.S. and other foreign manufacturers.
“We recognize that there are significant areas of contention in the U.S.-China relationship, many of which have no easy or short-term prospects for resolution,” the report said.
It emphasized the importance of high-level exchanges and communication between the two sides, noting that American companies operating in China saw improved profits last year, although less than half anticipate profitability in 2024.
The American Chamber made several recommendations in its report, urging China to create and implement transparent and practical economic policies that treat domestic and foreign entities equally. It also called for clarification and narrowing of the scope of China’s anti-espionage law to prevent interference with normal business operations.
The report additionally provided recommendations for the U.S. side, including clear visa policies for Chinese students and encouraging American students to study in China. It also advised U.S. officials to avoid unilateral controls that may be ineffective and fail to meet goals for national security and foreign policy.
Despite the challenges, American companies generally are not planning to move supply chains out of China, given its庞大且重要的14亿人口市场。但随着中国优势的减弱，他们增加投资并将其作为战略重点的意愿有所降低。
