Advertisement
US-China relations
ChinaDiplomacy

Chinese firms in the US report revenue bounces back but investment drops with gloom about China-US ties

  • China General Chamber of Commerce in the US asked 111 Chinese companies about their revenue and their outlook, with 54 per cent reporting revenue growth
  • Almost half believed the next year would see China-US relations get moderately to substantially worse

Reading Time:3 minutes
Why you can trust SCMP
1
In a survey of Chinese companies operating in the US, around 54 per cent report revenue grow in the past year, and 48 per cent of respondents had revenue of US$50 million or more, a six-year high. Image: Shutterstock Images
Kinling Lo
Chinese businesses in the United States have seen their revenue return to pre-pandemic levels but investment has shrunk amid increasing pessimism about China-US relations, according to a survey of Chinese enterprises in the US.
Advertisement

The annual survey conducted in March and April by the China General Chamber of Commerce (CGCC) in the US asked 111 Chinese companies – 48 per cent were private companies and 19 per cent were government-owned – about their revenue from the US market in the past year as well as their outlook for the future.

“To a large degree, the changes in revenue reflected an annual growth prior to Covid-19, and even bounced back to the level of 2018 survey results,” the report launched on Thursday said.

02:24

Biden at G7 announces global infrastructure plan to counter China’s Belt and Road

Biden at G7 announces global infrastructure plan to counter China’s Belt and Road

Around 54 per cent of the surveyed companies have had revenue grow in the past year, and 48 per cent of respondents reported revenue of US$50 million or more, a six-year high, according to the report.

Washington has imposed further restrictions on Chinese businesses, especially in the tech sector, ranging from tightening policies on Chinese access to critical materials, increasing scrutiny of Chinese investments in US tech companies and imposing new requirements on Chinese companies to be listed on US stock exchanges.

Amid worsening ties between the two biggest economies in the world, US businesses have also cited an increasingly challenging business environment in China, according to the American Chamber of Commerce in China.

According to the survey, only 74 per cent of respondents reinvested most of their US profits in their US business in the past year, which the report noted was lower than the 90 and 80 per cent recorded in the past two years.

Advertisement
Advertisement