The proportion of American companies expressing optimism about their business prospects in China rose by four percentage points year-on-year to 61 percent in 2025, despite continued pressure from bilateral tariffs, according to a report released on March 10 by the American Chamber of Commerce in South China (AmCham South China).
A comprehensive survey of 426 companies for the 2026 Special Report on the State of Business in South China reveals that business optimism regarding prospects in China has increased, even as the adverse effects of U.S. and Chinese tariffs intensified markedly in 2025, affecting a record proportion of firms. Sentiment on the broader bilateral relationship has improved even more dramatically, with 39 percent of companies now expressing a positive outlook on the future of U.S.-China relations—a substantial 14-percentage-point increase from 2024.
"Although profitability has moderated slightly, the broader data reflects remarkable strategic resilience," said Harley Seyedin, Chairman and President of AmCham South China. "Companies are deepening—not retreating from—their engagement in China, recognizing the scale of its market and its long-term growth trajectory."
China's strategic importance to global corporate strategy continues to strengthen. Forty-five percent of companies surveyed ranked China as their top global investment priority, a six-percentage-point increase from 2024. Revenue data further underscores this emphasis, with 37 percent of companies generating more than 60 percent of their global revenue from China—also a six-percentage-point increase.
Commitment to the Chinese market remains exceptionally strong, with 95 percent of participating companies reaffirming their commitment to maintaining operations in China. Looking ahead, 75 percent of surveyed companies plan to reinvest in China in 2026. Collectively, member companies have earmarked an estimated US$13.79 billion from profits generated in China for reinvestment over the next three to five years.
"The message from American businesses is clear: they are committed to long-term participation in China's growth," Seyedin concluded. "Companies are reinvesting not only to expand market share, but to innovate and strengthen their integration within the Chinese economy."
The report also highlights that a stable majority of companies (59 percent) plan to expand their operational footprint within China over the next three years.
Seyedin emphasized the importance of continued bilateral engagement: "The U.S. and Chinese economies are deeply interconnected. While differences remain, our commercial ties are substantial and mutually beneficial. Continued dialogue will foster greater understanding and create a more stable environment for trade and investment."
Reporter | Xie Maishi, Hu Nan
Photo | AmCham South China
