Nearly 90% of US firms see positive China-US relations as crucial to operations in China, their important market: report

China remains an important market for US companies, with nearly half of respondents ranking it as a top-three global investment priority, according to a business survey released on Thursday.

Over half of the surveyed US enterprises anticipated increasing investment in their China operations in 2025, read the China Business Climate Survey (BCS) Report released by the American Chamber of Commerce in China (AmCham China) on Thursday.

Domestic consumption is regarded as the top business opportunity in 2025 in most sectors, the report showed.

However, the survey also showed that more than half of the responding American companies are concerned about a further deterioration in the bilateral relationship between the two economies in 2025.

In response to a question regarding AmCham China's BCS report regarding the matter, Foreign Ministry spokesperson Mao Ning stated on Thursday at a press conference, "This actually reflects how important it is to pursue a steady, sound, and sustainable China-US relationship."

China always views and develops China-US ties in line with the three principles put forth by the Chinese top leader, namely mutual respect, peaceful coexistence and win-win cooperation. We also hope the US will work with China and bring China-US relations back onto the track of sound and steady development, Mao said.

Rising tensions in US-China relations, with 63 percent of enterprises surveyed choosing in 2025, have remained the top business challenge of American enterprises in China since 2021, according to the BCS report.

"In 2021, it was 78 percent. This year, it's 63 percent. It's still the number one concern, but the percentage of companies choosing that has fallen," Michael Hart, president of AmCham China, said on Thursday during an online press conference for the BCS report release.

"A stable and constructive US-China relationship, grounded in economic and trade ties, is critical not only for the prosperity of our two nations but also for global economic stability," said Alvin Liu, AmCham China chair, at the Thursday online press conference.

It is worth noting that 87 percent of the respondents see positive China-US relations as crucial to their operations in China, up 5 percentage points compared with 2023. In the tech and research and development sectors, the proportion reached as high as 95 percent, according to the BCS report.

The Chinese market is still what American companies need, no matter what changes may occur to bilateral relations under the new administration, Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Thursday.

The Chinese market can bring huge benefits and opportunities to American companies, but the dilemma they face is some American politicians who hold prejudice and pursue aggressive policies against China, Li Yong, a senior research fellow at the China Association of International Trade, told the Global Times on Thursday.

According to the AmCham China report, responding companies hope the US government will refrain from engaging in aggressive rhetoric, reduce tariffs on Chinese goods, and pursue a results-oriented, institutionalized framework for regular bilateral dialogue, which are among the top five actions AmCham China's members hope to see from the US government.

"Some US politicians have disregarded the interests of US businesses in order to pursue political purposes, harming the business interests of American companies in China and even in the world," Li said

The report revealed that about one-fifth of the surveyed enterprises considered adjusting supply chains amid the impact of US-China trade tensions.

Regarding such business strategy changes, Hart said that "there is virtually no place that you can pick up what you had in China and set it down somewhere else."

"Under such circumstances, it is difficult for American multinational companies to achieve optimal technical and resource cooperation in the global framework, which will weaken the competitiveness of American enterprises," said Li.

However, China has always been committed to improving the business environment for foreign investors.

The BCS report also showed that 33 percent of US companies reported China's investment environment improved in 2024, up by 5 percentage points from the previous year.

China will continue to provide a level playing field for foreign enterprises in 2025, Chinese Ministry of Commerce (MOFCOM) spokesperson He Yadong said on Thursday at a regular press conference. The MOFCOM will focus on reducing the negative list, enhancing the business environment, and ensuring foreign enterprises operate in China with ease, confidence, and trust, so the "next China" is still China, He said.

"China has always been willing to listen to the ideas and suggestions of foreign companies operating in China, including American companies, to jointly improve the business environment for their development," said Zhou.