U.S. Firms in China Report Record-Low Confidence Amid Growing Geopolitical Tensions. Optimism About China's Future Sharply Declines.

Business confidence among American companies in China has reached historic lows due to U.S.-China tensions and China’s slowing economy. Only 66% of member companies surveyed were profitable in 2023, the lowest on record. Confidence metrics also hit all-time lows, with only 47% of respondents optimistic about their five-year outlook. A record 25% of companies cut investment in China last year, citing economic slowdown as the main factor. Foreign direct investment into China also fell in the first half of the year.