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China: From a land of opportunity to a land of risk for American companies

The China Business Report, published by American Chamber of Commerce in Shanghai Thursday.

The report stated that out of the 306 companies surveyed, 66 percent of them achieved profits in 2023.

The report also concluded that 47 percent of companies are optimistic about their business prospects in China over the next five years, the lowest level in the survey’s history for more than two decades.

Disagreements arose between Beijing And Washington In recent years due to several issues, including: Trade and Industryas well as claims China In the South China Sea.

Economic growth in the communist state is also slowing as weak consumer demand puts pressure on deflation Continuing even after the Covid-19 pandemic.

The report showed that Geopolitical tensions The two countries represent the “biggest challenge” facing American companies in China.

Eric Cheng, president of the American Chamber of Commerce in Shanghai, said at a press conference ahead of the report’s release that the survey was a “balance between risks and rewards.”

“The risks to business in China have increased in the past few years, but at the same time the market is slowing down with weak demand,” he said.

Many American companies are now redirecting their investments to other regions of the world, such as Vietnam, Malaysia and South Asia, Cheng said.

The report said that 25 percent of companies surveyed have reduced their investments in China in 2023, a record number, largely due to concerns about slowing growth in China.

While more than half are expected to American companies Compared to last year, only 37 percent expect China’s growth to outpace global growth in the next three to five years.



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