Chinese firms in US see more negative business climate amid ‘significant’ downturn: survey

Trade tensions and ‘hostile public sentiment’ fuel findings, with dips in performance resembling 2020 when coronavirus pandemic hit globally

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More than 90 per cent of respondents see ‘stalemate in Sino-US bilateral relations political and cultural relations’ as a challenge of doing business in America. Photo: Shutterstock

Published: 5:30am, 25 Jun 2024Updated: 10:08am, 25 Jun 2024

A survey of Chinese enterprises in the United States found that their perceptions of the business and investment climate in the country have turned more negative, with many firms stating fewer plans to invest.

The annual survey conducted by the China General Chamber of Commerce in the US also found that Chinese firms faced a “significant performance downturn” last year, similar to 2020 when the coronavirus pandemic started to hit businesses worldwide.

It found that 21 per cent of the surveyed companies saw revenue declines exceeding 20 per cent last year, compared to 13 per cent facing that level of underperformance in 2022.

“The overall revenue trend in 2023 continued the clear decline that began in 2022,” according to the report, which was launched on Monday. “This trend marks a notable shift from the strong rebound year seen in 2021.”

Conducted in April and May, the survey asked about 100 Chinese companies – financial institutions, industrial enterprises and consumer discretionary firms, among others – about their revenue from the US market in the past year as well as their future outlook.

Many Chinese companies listed on American bourses like the New York Stock Exchange lost value in 2023. Photo: AP

Trade tensions have been escalating between the world’s two biggest economies with additional American sanctions on Chinese goods. The economic and geopolitical frictions have also been an evolving focal point for investors.