AmCham Survey Findings Show US Businesses Bullish on China in 2021
October 7, 2021
A majority of US businesses still bullish on China and are optimistic about its market growth potential. They intend to expand their operations in the country despite US-China tensions, increasing competition from local players, and hiring challenges.
Pharmaceuticals, medical devices, and life sciences companies as well as automotive, non-consumer electronics, and industrial manufacturers are among the most optimistic.
Contrary to expectations, over 72 percent of respondents said that they had no plans to move supply chains out of China in the next three years.
On September 23, 2021, American Chamber of Commerce in Shanghai (AmCham Shanghai) released the 2021 China Business Report. The report found that optimism among US companies in China has surged and almost returned back to pre-trade war levels.
The survey was conducted from mid-June to mid-July 2021 and received responses from 338 AmCham member companies. Here, we summarize some key takeaways from the report.
Revived optimism about China business outlook
More than three quarters of the surveyed American companies are “optimistic” or “slightly optimistic” about their business outlook in China over the next five years, akin to the 80 percent figure observed from 2015-2018. Less than 10 percent were pessimistic, versus around 20 percent in 2020 and in 2019.
The buoyancy is reflected in companies’ projected investment. The vast majority (over 80 percent) of companies had no plans to redirect their China investment to other places. Almost 60 percent of companies reported increased investment for 2021 compared to 2020, up 30.9 percentage points from last year.
The leading reason behind this may be that businesses
